Business Modeling Using Simulation Homework
1. Complete Problem 2-12 from your text on page 51 using the newsvendor.xls file from Book Examples. Disregard the instruction to keep the sample value at 150, the news vendor sample size is 30 so leave it at that. Your objective is to hone in on the optimal value of of q using trial and error and the news vendor spread sheet. Modify the spreadsheet until you are satisfied with your q value and submit it.
2. Complete Problem 2-15 also on page 51 of the text.
NOTE: There are 3 challenges to the problem:
1. Designing a spreadsheet from scratch that models the structure (flow) of the system. (you must derive an equation that represents the word problem)
2. Designing the spreadsheet to model stochastic behavior of the system (randomness)
3. Designing the spreadsheet to model 30 iterations of the equation resulting in a 30 row simulation.