Submitted by: Submitted by nadee04
Views: 848
Words: 834
Pages: 4
Category: Other Topics
Date Submitted: 06/05/2011 06:45 PM
Executive Summary
Monte is unsure of the attendance or the percentage of concert goers who will buy the DVD. After the Friday concert, she asked her assistant Fyno to come up with a number of DVDs that they should order and sell at the Saturday concert. So the problem remains how many DVDs should be ordered and offers for sale at the Saturday concert? In order to come up with the quantity of DVDs that should be burned, the RiskSimtable simulation model was used. The reason for using this model is because it can tell us the best order quantity that can provide the largest average profit. Several simulations were run all at once using the RiskSimtable model and the various order quantities as the input range. RiskSimtable takes a lot of time and work, and it is a little bit restrained. To avoid this issue, each quantity was tested on the same set of random numbers.
Background
In this case, the Friday concert had already happened and the sky was clear and almost perfect to make the master DVD. The attendance for the Friday concert and was little bit better than average. Therefore, Monte and Fyno needed to come up with the number of DVDs needed for Saturday concert based on the number of attendance. It was forecasted that that there would be an 80% rain for Saturday concert. Based on this news, Fyno decided to check the files for the 15 year run of the concert to see the difference in attendance on both Friday and Saturday whether it rained or not each night. Fyno quickly realized that there is a variability of attendance for both nights. Fyno realized that with the information he found and he needs to come up with the number of attendees for Saturday night concert.
Problem
Just as in Part A in the Lac Leman case, the problem still remain The problem to find out how many DVDs Monte should burn early Saturday morning and offered for sale at that evening performance.
Analysis
Since the historical data for the past fifteen...