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Words: 371

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Category: Business and Industry

Date Submitted: 03/07/2012 08:58 PM

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Jet Copier Simulation

Diedra Toney

James, Ernie, and Terri are college students at State University. They have to go to the copier center that is near the college campus quite frequently. They notice that the copier lines are always long. They decided to go into the copier business. However, Ernie discovered that the copier will breakdown. He got the copier breakdown information from the school. It was estimated that the probability of the copier breakdown was between zero and six weeks. Also, the repair time was between 1-4 days with a probability of .20, .45, .25, and .10. They wanted to know the time between breakdowns for one year. The time between breakdowns was calculated by using an Excel Spreadsheet called time between breakdowns. R = the random number. In Excel, I used the rand function and I copied the function down 12 line items to represent 12 months of random breakdowns. The time between breakdowns was computed in Excel for 12 months by multiplying the maximum breakdown time by the square root of the random number in cell a2-13. The cumulative breakdown times are calculated in cells c2-13 by adding cell b2 and dragging down the cells.

The repair time was calculated using an Excel Worksheet named repair time. A table was constructed showing the probability, cumulative probability and repair time from 1-4 days. A v-lookup table was developed using =rand in Excel calculating the repair time.

James, Ernie, and Terri wanted to know the annual revenue that would be lost due repair time. If the loss is greater than $12,000, they will purchase a backup copier that cost $8,000. The revenue lost was calculated in Excel in the revenue lost worksheet. In this spreadsheet, columns were developed and the rand function was used to represent 12 weeks of random numbers. Copies lost were calculated by the amount of expected copies of 8,000 by the random numbers. Revenue lost was calculated by copies lost time the probability of the maximum repair...