Free Essay

In: Other Topics

Submitted By jkiragis

Words 655

Pages 3

Words 655

Pages 3

Assignment #1: JET Copies Case Problem

By: Jenna Kiragis

Quantitative Methods 540

7/29/2012

JET Copies Case Problem page 2

Case Problem

JET Copies is a copy business opened by James, Ernie, and Terri, three students who wanted to make it more convenient for other students in their apartment complex to get copies in a timely manner. After obtaining a copy machine for the business with a loan from Terri’s mother, the students soon began discussing the frequent breakdowns that may occur. It was then that the three decided they needed a backup copier. However, the students wanted to first have an estimate of how much money they would be losing if they did not have a backup copier (Taylor, 2010). This paper will discuss methods that simulate the number of days needed to repair the copier, the intervals between successive breakdowns, and the lost revenue for each day the copier is out of service. All of these methods together will simulate the lost revenue due to copier breakdowns over 1 year.

JET Copies Case Problem page 3

In Excel, use a suitable method for generating the number of days needed to repair the copier, when it is out of service, according to the discrete distribution shown.

Lost revenue of Jet Copies due to breakdown can be done by generating random numbers from different probability distributions according the given probability law. The different steps of this simulation and assumption made are explained below.

1. Simulation for the repair time. It is given that the repair time follows:

|Repair Time (days) |Probability |

|1 |0.2 |

|2 |0.45 |

|3 |0.25 |

|4 |0.1 |

To generate a random number from the above distribution, we use the following procedure.

Generate a random number denoted by r2 from between 0 and 1. If this generated random number is less than or equal to 0.2 take repair time = 1. If the generated random number is 0.2 to 0.65, we take repair time =2. If the generated random number is 0.65 to 0.90, we take repair time = 3 and take 4 otherwise.

In Excel, use a suitable method for simulating the interval between successive breakdowns, according to the continuous distribution shown.

2. Simulation for break-down Distribution

Given that the probability distributions of random variable X representing the time between break-downs varies from 0 to 6 weeks with probability increasing continuously, the copier went without breaking down can be approximated by the probability distribution f(x) =x/18 0 < x < 6 the distribution function of x is F(x)=x2/36 0 < x < 6

If r1 is another random number generated between 0 and 1, then we can write r1= x2/36

JET Copies Case Problem page 4

Hence x=6[pic]

Therefore to simulate from the break down distribution, generate a random number r1 between 0 and 1 and make the transformation, x=6[pic].

In Excel, use a suitable method for simulating the lost revenue for each day the copier is out of service.

3. Simulation for Lost Revenue.

It is given that the number of copies sold per day follows a uniform probability distribution between 2,000 and 8,000 copies. The revenue loss random number per day can be obtained by generating a uniform random number r3 between 2000 and 8000. Since the number of copies sold per day is a uniform probability distribution between 2000 to 8000 copies, r3 is a random number between 2000 and 8000. To get the amount of business lost on a particular day is r3 repair time, and the lost revenue is then equal to0.1 r3 repair time, since they charge $0.10 per copy.

Put all of this together to simulate the lost revenue due to copier breakdowns over 1 year to answer the question asked in the case study.

1. Repair Distribution

Px }

Premium Essay

...Bottling Company Case Study | MAT 300: StatisticsProfessor: Dr. Negash Begashaw September 2, 2014 | Maggie L. Moore | Customers have begun to complain that the bottles of Lonice’s Soda contain less than the advertised sixteen ounces of soda. Today I asked my employees to randomly pull thirty bottles off the lines at random from all the shifts at the Lonice’s bottling plant. After asking them to measure the amount of soda in each bottle we came up with the following data. (See attached spread sheet). To calculate the mean, median and standard deviation for the ounces in the bottles I first imported the data in excel. After importing the data I use the Data analysis function where I choose descriptive statistics. Once choosing descriptive statistics I clicked ok and input my data range. Afterward I selected summary statistics and press OK. The forwarding data was provided; the mean equaling 14.87, median equaling 14.8, standard deviation equaling 0.550. To construct a ninety-five confidence interval for the ounces in the bottles I use the following information. X equal to 14.87 which is the mean of the data from the bottles, n equal to 30, because of the amount of bottles we use, standard deviation equals zero point five five zero which was calculate with the data from the bottles. I use the formula [ ] which gave me the lower limit of 14.673 and an upper limit of 15.067. Finally I conducted a hypothesis test to verify if the claim that a......

Words: 824 - Pages: 4

Free Essay

...To maximize profits Julia should provide 1,250 pizza slices; 1,250 hot dogs and zero BBQ sandwiches. A profit would be maximized (represented as Z) at $2,250 for game. However it is important that we discuss her expenses and take that into consideration as well. She has to lease the actual booth and it costs her $1000 to do so per game. She also has to lease the warming oven, which is $600 for the 6 game season; this equates to $100 per game. So her profit would be $2250 - $1000 (booth) - $100 (oven) = $1150. Julia uses $1500 for the first time but after that she can use the profit from the previous game to supply funds for the food in the future. A) Evaluate the prospect of borrowing money before the first game. If Julia borrowed money it would increase her profit. The dual value from the linear programming model is $1.50 for each additional model. From the table, you can see that the upper limit is $1,658.88. This translates that she should only borrow $158.88, which is formulated by $1,658.88- $1,500.00 (her original investment money). Her original profit was $2,250. If you add her additional profit of $238.32 to her original profit, then there will be a new total profit of $2,488.32. B) Evaluate the prospect of paying a friend $100/ game to assist. Julia should indeed hire her friend for $100 per game. That would be a lot of work for one person in a very limited time frame. This would be a smart business move, especially if you take into......

Words: 489 - Pages: 2

Premium Essay

...To accomplish the goal of bringing my Café to the new millennium I will assesses our ability to compete in the new market based off Porters Five Forces. The five forces are buyer power, supplier power, threat of substitute products or services, threat of new entrants, and rivalry among existing competitors. These forces will allow us to approach each situation with a proven business model. Buyer power in our current community is high. The ability to substitute the products we offer is significant. Grocery stores, major franchises, and other markets are able to sell salads, coffee beans, pastry and more. The ability to switch between venues is effortless and with the addition of Dunkin Donuts as a competitor, the buyer power will be even stronger. To compete against the buyer power we will need to create a rewards program. The rewards program also known as a loyalty program will be offered to all customers. The company’s offerings will be discounts on purchases, reward points for future purchases, special coupons, and more. The objective of this program is to give my Café the advantage for purchases and to bring the customer in along with new friends to my store. Supplier power is how many choices a buyer has to obtain the product of choice. In the current market, the supplier power is very low due to the business-to-business (B2B) through the Internet. B2B is essential for keeping cost down and to guarantee our coffee bean distributor stays in line with......

Words: 2467 - Pages: 10

Premium Essay

...FIN 534 – Financial Management (Prerequisite: ACC 557 or ACC 560) COURSE DESCRIPTION Introduces the concepts of finance. Reviews the basic tools and their use for making financial decisions. Explains how to measure and compare risks across investment opportunities. Analyzes how the firm chooses the set of securities it will issue to raise capital from investors as well as how the firm’s capital structure is formed. Examines how the choice of capital structure affects the value of the firm. Presents valuation and integrate risk, return and the firm’s choice of capital structure. INSTRUCTIONAL MATERIALS Required Resources Brigham, E. F., & Ehrhardt, M. C. (2014). Financial management (14th ed.). Mason, OH: South-Western Cengage Learning. (Note: This is a textbook uniquely created for Strayer and can only be purchased through the Strayer Bookstore. The contents of the book differ from the national title.) Tabbush, V. C., Trueman, B., Levine, D. Opler, T., Brandwein, A. C., Hanna, M. D., & Baran, R. J. (2011). MBA primer: Finance 3.0 instructor-led printed access card (3rd ed.). Mason, OH: Cengage Learning. Supplemental Resources CNN Money. (2013). General format. Retrieved from http://money.cnn.com/ Criniti, A. (2013). The necessity of finance. Philadelphia, PA: Criniti Publishing Company. Fidelity Investments, Inc. SWOT analysis. (2013). Fidelity Investments, Inc. SWOT Analysis, 1-8. Hasseltoft, H. (2012). Stocks, bonds, and long-run consumption risks. Journal of Financial &......

Words: 4119 - Pages: 17

Premium Essay

...Case Study 1 The University Bookstore Student Computer Purchase Program Case Study Pamela Hurdle Dr. Vargha Azad Quantitative Methods MAT 540 December 11, 2009 Case Study 2 Table of Contents Title Page 1 Table of Contents 2 Abstract 3 Case Information 4 Case Study 5-9 Conclusion 10 Reference 11 Case Study 3 Abstract Case problem, “The University Bookstore Student Computer Purchase Program” will forecast the bookstore use of computer demand for the next fall semester. It will show the history of computer purchased and the projected demand for the upcoming semester. It will also show the effectiveness of staff and production. They are operating on a very small profit margin. Case Study 4 Case Study Case Problem: The University Bookstore Student Computer Purchase Program Bernard Taylor in this chapter gives us the understanding of how to use forecasting to predict the future of demand of business for our entities. Forecasting is the prediction of what will occur in the future. We can forecast any aspect of life. Mathematically and through management, we can forecast the guideline of decision making for our entities and everyday living. There are many different aspects of forecasting. Short range forecast envisages the near future. It......

Words: 750 - Pages: 3

Free Essay

...Parrish Abstract This paper discusses the historical background of tessellations, the mathematics of tessellations, and the applications of tessellations in the real world. Tessellations are found everywhere. M.C. Escher is the father of tessellations and his style and examples are discussed as well as the Islamic tessellations. There is an overview of the mathematics that is involved in tessellations and the polygons that can be tessellated and those that can’t. Finally, tessellations are used in real world applications. Examples are given of tessellated buildings and tessellations found in nature. Tessellations: Mathematical Art What is a term used for the tiling a surface without gaps or overlaps? The term is Tessellation. The Math Forum states that “ a tessellation is created when a shape is repeated over and over again covering a plane without any gaps or overlaps” (“What is a Tessellation?”, n.d) Early cultures used tessellations to cover the floors and ceilings of buildings, many of its artistic elements can be found in many early cultures (Hoopes-Myers, 2010). Tessellations are also found in the nature. A perfect example of nature’s tessellation is the honeycomb of the honeybee; there are no gaps or overlaps in its hexagonal shapes. In Ireland, a volcanic episode created tessellations in the landscape of The Giant’s Causeway (“Giant’s Causeway” n.d.). Artists like M. C Escher use tessellations to create fascinating works of art. In his works Escher......

Words: 2820 - Pages: 12

Free Essay

...Homework Set 7 Chapter 4 & 5 Math 540 Quantitative Methods 1 Eagle Taven. Work problem 12 on page 150. Post model in the following box. Post Excel output in the following box. a) Is this a max or min problem? Ans & Z value b) How much more would be made if you added 100 to the storage capacity? c) What is the shadow price of Rainwater? (5 points) 2 Southfork Feed Company. Work problem 26 on page 157. Force the mix to have 50 pounds of corn. Set up the model Paste the Excel Sheet Below Is this a max or min problem? What is the solution? We are forcing corn to be added to the solution. For each pound of corn added how much are we increasing the cost? (5 points) 3 Kreeger Grocery Store. Work problem 33 on page 214. Your brother-in-law runs store 6, force store six to stay open. Set up the model Paste the Excel Sheet Below Is this a max or min problem? What is the solution? Extra Credit (4 points) ...

Words: 297 - Pages: 2

Free Essay

...MATH 540: Quantitative Methods JET Copies Case Problem Assignment: 1 Strayer University Winter Quarter 2012 Days to repair method is based on discrete probability distribution that assigns a probability to the number of days provided and thus assumes results in clearly separated values. The model makes use of the discrete distribution to calculate the central tendency and this may also be referred to as weighted average. The model determined mean multiplying the number of days with the corresponding probability and the results were summed up. The results indicate that once a copier broke down, it requires 2.25 days to repair it. Interval between breakdowns also utilized discrete distribution in order to come up with interval period. The graph provided indicated that 0.33 (y axis) is a function of 6 (x axis) and this enabled the model to calculate for M which is uniformly distributed. C was concluded to be 0 since the graph starts from the origin (f(x) = mx). The model utilizes mean to determine the number of weeks between each breakdown. The results show that the copier would breakdown after every 5 weeks. Lost revenue model calculates the amount of revenue that is lost every time the copier breaks down. An average of the number of copies that are expected to be made is used to calculate for lost revenue because case information shows uniform probability distribution between the number of copies......

Words: 349 - Pages: 2

Free Essay

...* uestion 1 4 out of 4 points | | | Problem 2: Complete Template "HW15-2" under Student Center, Homework Templates and upload it here......Answer | | | | | Selected Answer: | math 540 hw 15-2a.xlsx | | | | | * Question 2 0 out of 2 points | | | Problem 6a: What is the Exponentially Smoothed MAPD?Answer | | | | | Selected Answer: | 11.6% | Correct Answer: | | Evaluation Method | Correct Answer | Case Sensitivity | Exact Match | .166 | | Exact Match | 16.63% | | Exact Match | O.166 | | Exact Match | 0.17 | | Exact Match | .17 | | Exact Match | 17% | | Exact Match | 16.6% | | | | | | | * Question 3 4 out of 4 points | | | Problem 9: Which method of forcast in part a, b, and c give the best forecast?Answer | | | | | Selected Answer: | Exponentially smoothed forecast | Correct Answer: | Exponentially smoothed forecast | | | | | * Question 4 2 out of 2 points | | | Problem 26A: What is the Forecast if 30 permits are filed?Answer | | | | | Selected Answer: | 10.40 | Correct Answer: | | Evaluation Method | Correct Answer | Case Sensitivity | Exact Match | 10.40 | | Exact Match | 10.4 | | Exact Match | 10.40 Sale | | Exact Match | 10.40 Sales | | Exact Match | Y=10.40 | | | | | | | * Question 5 2 out of 2 points | | | Problem 26B: What is Correlation coefficient?Answer | | | | | Selected Answer: |......

Words: 352 - Pages: 2

Premium Essay

...Jet Copies Shaneka Thompson Assignment 1 Math 540 Case Problem Finding the average days of repair in the simulation, first you click on the module at the top and scroll to simulation. Click simulation and open new file. There was a pop up box which you label. I labeled mine Average days of repair. Then I picked 4 categories and put in 100 trails and clicked Ok. When the spreadsheet came up I place in the value section 1, 2, 3, 4 and he frequency I placed 0.2, 0.45., 0.25, and 0.10 and clicked solved in the top. This gave me an average of 2.31 days. By hand I calculated the copies per day. I repeated the steps for getting the weeks between break down. I picked 4 categories and 100 trials. For the values I placed in 1, 2, 3, 4 symbolizing the weeks and 1,1,1,1 for the frequency. This simulation gave me the average of 2.68. By hand I calculated the estimated loss of revenue per year. The third simulation was to determine the loss of revenue per day. The values that were used were the estimated dollar amount and the frequency that I used was 1, 1, 1. This gave me an average of 521 days. I then by hand found the estimated revenue lost. Once the average numbers were tallied, I placed the numbers in the stimulation to gather the average cost per year which was by, simulation 23,633. 58 to 23,931.54 and by estimate was 23,100. The overall view the QM simulation if uses correctly and numbers are used correctly gives a correct simulation of loss or profit. I believe just using......

Words: 577 - Pages: 3

Free Essay

...Julia’s Food Booth Kenneth W. Dayton Strayer University 11/25/2011 Math 540 Quantitative Reasoning Julia Robertson is a senior at Tech University and wants to find a way to make extra money to finance her final year at school. She is considering leasing a food booth outside the Tech stadium during home football games. Julia knows the games sell out and the crowd eats a lot of food. Julia has spoken with Ken a consultant and has agreed to investigate her leasing a food booth. Ken will look at the following items to determine if it is a good decision. The first item is creating an L.P. model (linear progression) to help understand the constraints and how to maximize her profit. Julia was asking if she should borrow money from a friend so this will also be evaluated. Julia wants to hire friend to help her with the booth and she is uncertain about the impact of the model. By looking at the L.P. model Ken can determine her best course of action and if she should lease the booth. The first step is to create the L.P. model to determine an objective function. The objective function ken determines to use is Max Z= .75p+1.05h+1.35b which can be done by looking at the information available such as items being sold, how much those items cost Julia to buy, how much she plans to sell each item for, looking at how one item can sell as much as or more than another item. Julia wants to sell Pizza, Hot Dogs, and Bar-B-Q sandwiches. Julia is going to have a Pizza company deliver a 14......

Words: 1169 - Pages: 5

Free Essay

...English 111 September 18th 2011 The Hard Truth The short story “The Lesson” by Toni Cade Bambara is a story that brings to light the lesson of social standings in America. It also shows you how one person can help change the lives of the children in a community. The story is set in the slums of a larger city. The characters in this story are a group of young, uneducated children originally from the south. The children are taken under wing by an older women with a higher education named Miss Moore. In the story Miss Moore takes the children on a trip into New York city where she tries to show them how unfair our society can be, teaching the children lessons for life such as math and grammar. These lessons however are only there to lead up to the larger picture of her lesson for the day. During the trip that Miss Moore and the children took you begin to understand and get a feeling for how the narrator, Sylvia, felt about where she lived and who she was. Sylvia started out the story not understand or appreciating who Miss Moore was and what Miss Moore was doing for her and the rest of her family. She made fun of Miss Moore with her cousins because Miss Moore spoke proper and dressed differently than the other people whom lived around her. To Sylvia and even her cousins Miss Moore was a person that they disliked for reasons they didn't understand. She was different than the rest of the people in their lives. And to young children, that is reason enough for them to......

Words: 1398 - Pages: 6

Premium Essay

...FORCASTING METHODS Math 540 Quantitative Methods Professor: Forecasting Methods Outline Strategic Role of Forecasting in the Corporate World of Business Components of Forecasting Demand Time Series Method Forecasting Accuracy Regression Methods Benefits of Forecasting Benefits of forecasting Forecasting can help you make the right decisions, and earn/save money. Here are a few examples. Define better sale strategies If a product is declining, maybe it is a good idea to consider stop producing it. But maybe not: maybe it is just your sales that are declining, but not your competitor's? In this case, is there a chance that you can get your market share back? Forecasting techniques provide answers to these questions – vital questions to your business. Size your inventories optimally Time is money. Room is money. So what you want to do is use all means at your disposal in order to reduce your stocks – without experiencing any shortages, of course. Forecasting Components Short-Range Forecast Daily operations Medium-range Forecast Used from anywhere from a month up to 1 year Long-range Forecasting More strategic and for over a year Forecast Patterns Trend A gradual long-term up or down movement of demand Random variations Unpredictable movements in demand that follow no pattern Cycle An up and down repetitive movement in demand Seasonal pattern An up and down repetitive movement within a trend occurring......

Words: 657 - Pages: 3

Premium Essay

...Running head: Jet Copies Case Study 1 JET COPIES CASE STUDY James C. Kessler Strayer University Introduction to Management Science Math 540 Dr. Yaw Kyei January 3, 2013 Jet Copies Case Study 2 Days-to-Repair I typed the name jet copies into the A1 slot. Then I made the letters bold and used the cells section to increase the row height and the column width. I also increased the font size. I then typed in the probability of weekly demand section. Increasing the font size and making it bold. I set up three columns, P(x), cumulative, and repair time. This was taken from the table that was given. Because we need 52 weeks of information I set numbers for 60 weeks, starting with column E6. I then went to G6 and typed in =RAND() to start a random number sequence and hit enter. I then clicked on G6 and right clicked and held down to set up 60 random numbers. I then went to the clipboard section and clicked copy. Then we clicked on F6, then right clicked, then clicked on past special, then clicked on values, then clicked ok to set the values we would use. Then I left clicked on G6, then clicked on delete, then clicked entire column to remove. To develop the probability of breakdowns I had to assume values for P(y). We were given six operating times and given .33 as the highest probability, we then assumed the others with the total equaling 1.00. I then set up the cumulative column, and the operating time to......

Words: 920 - Pages: 4

Free Essay

...opportunity to use online financial reports in a managerial finance setting * an opportunity to practice applying legal concepts to personal and business affairs COURSE REQUIREMENTS: To help you learn the subject matter of this course, you should: * regularly log onto Blackboard * complete the chapter readings * participate in online discussions * participate in individual and/or group learning activities * complete quizzes and mid-term and final examinations GRADING: Discussion questions (20 points each set x 8) 160 Six quizzes (40 points each) 240 Mid-term examination (100 points) 100 Final examination (100 points) 100 Total points 600 540 - 600 A 480 - 539 B 420 - 479 C 360 -...

Words: 1090 - Pages: 5