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    Spreadsheet simulation using Excel

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    The owner of Carlo's Computers is planning a 7-day promotion (Sunday-Saturday) to launch a new PC called "PCLink1000." *The shop owner is pricing these PC's at $675 each, and he buys them for $425 each. *He must buy in bundles of 25 sets. *At the end of the promotion, the distributor will buy any unsold PC's back for $350 each. *Demand is uncertain, but Carlo has gathered the following daily demand estimates
    Computers Demanded Daily Probability

    0 12%
    1 22%
    2 28%
    3 22%
    4 10%
    5 6%

    PROBLEM: How many TV's should Carlo buy so as to maximize profits?
    We MUST use Excel's simulation/optimization capabilites. Or, we can use an add-in to Excel called Crystal Ball/OptQuest.

    (see attachment).

    © BrainMass Inc. brainmass.com October 9, 2019, 3:50 pm ad1c9bdddf
    https://brainmass.com/business/strategy-and-business-analysis/spreadsheet-simulation-using-excel-14660

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    The owner of Carlo's Computers is planning a 7-day promotiuon (Sunday-Saturday) to launch a new PC called "PCLink1000." *The shop owner is pricing these PC's at $675 each, and he buys them for $425 each. *He must buy in bundles of 25 sets. *At the end of the promotion, the distributor will buy any unsold PC's back for $350 each. *Demand is uncertain, but Carlo has gathered the following daily demand estimates (see attachment).

    PROBLEM: How many TV's should Carlo buy so as to maximize profits???? We MUST use Excel's simulation/optimization capabilites. Or, we can use an add-in to Excel called Crystal Ball/OptQuest.

    Step 1: Create the cumulative probability table and ...

    Solution Summary

    Uses Excel for simulation.

    $2.19