Use the information below to answer the following question(s). Consider the following spreadsheet for an outsourcing decision model. A Outsourcing Decision Model B 1 2 3 Data 4 5 Manufactured in-house 16 Fixed cost $ 60,000 7. Unit variable cost S 130 8 19 Purchased from supplier 10 Unit cost $165 11 12 Demand volume 1,000 13 14 Model 15 16 Total manufacturing cost 17 Total purchased cost 18 19 Difference 20 Decision We assume that the production (demand) volume is normally distributed with a mean of 1,000 and a standard deviation of 100. For the unit cost, select the triangular distribution. It has a minimum value of $150, most likely value of $165, and a maximum value of $190. The number of trials per simulation is equal to 5,000 at a Sim. Random Seed of 1. Run the simulation and answer the following question(s) using the Analytic Solver Platform. [Hint: choose the closest value.] Determine the value of standard deviation found from the simulation results Select one: a. $9,175 Ob. $7,884 C. $3,860 d. $12,870

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Question
Pavan
Use the information below to answer the following question(s).
Consider the following spreadsheet for an outsourcing decision model.
A
Outsourcing Decision Model
B
1
2
3
Data
4
5
Manufactured in-house
16
Fixed cost
$ 60,000
7.
Unit variable cost
S 130
8
19
Purchased from supplier
10
Unit cost
$165
11
12
Demand volume
1,000
13
14
Model
15
16
Total manufacturing cost
17
Total purchased cost
18
19
Difference
20 Decision
We assume that the production (demand) volume is normally distributed with a mean of 1,000
and a standard deviation of 100. For the unit cost, select the triangular distribution. It has a
minimum value of $150, most likely value of $165, and a maximum value of $190. The number
of trials per simulation is equal to 5,000 at a Sim. Random Seed of 1. Run the simulation and
answer the following question(s) using the Analytic Solver Platform.
[Hint: choose the closest value.]
Determine the value of standard deviation found from the simulation results
Select one:
a. $9,175
Ob. $7,884
C. $3,860
d. $12,870
Transcribed Image Text:Use the information below to answer the following question(s). Consider the following spreadsheet for an outsourcing decision model. A Outsourcing Decision Model B 1 2 3 Data 4 5 Manufactured in-house 16 Fixed cost $ 60,000 7. Unit variable cost S 130 8 19 Purchased from supplier 10 Unit cost $165 11 12 Demand volume 1,000 13 14 Model 15 16 Total manufacturing cost 17 Total purchased cost 18 19 Difference 20 Decision We assume that the production (demand) volume is normally distributed with a mean of 1,000 and a standard deviation of 100. For the unit cost, select the triangular distribution. It has a minimum value of $150, most likely value of $165, and a maximum value of $190. The number of trials per simulation is equal to 5,000 at a Sim. Random Seed of 1. Run the simulation and answer the following question(s) using the Analytic Solver Platform. [Hint: choose the closest value.] Determine the value of standard deviation found from the simulation results Select one: a. $9,175 Ob. $7,884 C. $3,860 d. $12,870
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