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Modeling and Simulation

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Anwer the following questions in the attached file:

Problem 15-14
Problem 15-16
Problem 15-17 - See the separate attachment for Solve Problem 15-1

(15-14) Clark Property Management is responsible for the 4 maintenance, rental, and day-to-day operation of a large apartment complex on the east side of New Orleans. George Clark is especially concerned about the cost projections for replacing air conditioner compressors. He would like to simulate the number of compressor failures each year over the next 20 years. Using data from a similar apartment building he manages in a New Orleans suburb, Clark establishes a table of relative frequency of failures during a year as shown in the following table:

Number of A.C. Compressor Failures Probability (Relative Frequency)
0 0.06
1 0.13
2 0.25
3 0.28
4 0.20
5 0.07
6 0.01

He decides to simulate the 20-year period by selecting two-digit random numbers from the third column of Table 15.5, starting with the random number 50. Conduct the simulation for Clark. Is it common to have three or more consecutive years of operation with two or fewer compressor failures per year?

(15-16) Compute the expected number of cars arriving in Problem 15-15 using the expected value formula. Compare this with the results obtained in the simulation.

(15-17) Refer to the data in Solved Problem 15-1, which deals with Higgins Plumbing and Heating. Higgins has now collected 100 weeks of data and finds the following distribution for sales:

Hot Water Heater Sales Per Week Number of Weeks This Number Was Sold
3 2
4 9
5 10
6 15
7 25
8 12
9 12
10 10
11 5

(a) Resimulate the number of stockouts incurred over a 20-week period (assuming Higgins maintains a constant supply of 8 heaters).
(b) Conduct this 20-week simulation two more times and compare your answers with those in part (a). Did they change significantly? Why or why not?
(c) What is the new expected number of sales per week?

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If you will do it, I need to know your charge. since I failed to include it previously.

Please see the question with the other three parts to the assignment you are working on. I thought it was included but it was not. Please let me know if you can do or if I need someone else to do it for me. Thank you!

In SLP2, you will again be provided the numbers to be input for each of four decision points. For purposes of SLP2, pricing will be more conservative (lower) than the pricing strategy reflected in the Module 1 SLP.


Run the simulation, entering the following numbers at each of the four major decision points:

1) Decision 1: For Years 2008-2012

a) Pricing - Manual

b) Module Price - $0.13

c) Revenue to Process Improvement - 5%

d) Years to Advance - 5 years

2) Decision 2: For Years 2013-2017

a) Pricing - Manual

b) Module Price - $0.11

c) Revenue to Process Improvement - 5%

d) Years to Advance - 5 years

3) Decision 3: For Years 2018-2022

a) Pricing - Manual

b) Module Price - $0.09

c) Revenue to Process Improvement - 5%

d) Years to Advance - 5 years

4) Decision 4: For Years 2023-2025

a) Pricing - Manual

b) Module Price - $0.08

c) Revenue to Process Improvement - 5%

d) Years to Advance - To end

NOTE: Do not change the numbers displayed in the "Settings" tab!

At each of the four (4) decision points above, you are required to analyze the impact of your Module Price on market share and total profits. You are also required to determine how process improvements yield a reduction in unit costs. Be sure to copy tables and charts to support your analysis. You may need t use Excel to edit the charts and tables. However, do not use figures and tables as "space fillers" - use these only to support your analysis.

Keys to the Assignment

The key aspects of this assignment that should be covered and taken into account in preparing your 5-6 page paper include:

Include discussion and analysis of key metrics at the end of each decision point (e.g., among other data, be sure to include total market share, revenue, cumulative profit, consumer net price, modular price, unit cost, etc.). As an MBA, it is your job to identify cause and effect!
For each decision point, be sure to include comparative tables that include what you believe to be the most important data. Don't merely recite the data, however - instead, analyze the data! As an MBA, what does it tell you?
Make recommendations. What would you have done differently as it relates to pricing, process improvement, or other?
Compare and contrast the pricing decisions made in SLP1 and SLP2. Give key metrics that demonstrate how the different pricing decisions have affected market share, cost to the customer, cost of goods sold, revenue, profits, etc., etc.
Be sure that you retain all SLP2 notes, tables, and figures, as you will be comparing the results of SLP2 with those of SLP3 in the next module.

**** NOTE: The 5-6 page requirement includes written analysis and all supporting tables, figures, and graphics. However, it does not include Cover or Reference page. Be sure to adhere to the TUI Writing Guide for formatting of all papers. If you are unsure how to complete a financial analysis, please review the following sample report:


Also refer to the following source on business writing:

O'Hara, C. (2014, November 20). How to improve your business writing. Harvard Business Review. Retrieved from https://hbr.org/2014/11/how-to-improve-your-business-writing?utm_campaign=Socialflow&utm_source=Socialflow&utm_medium=Tweet

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