file is attached below
Decision making with Uncertainty assignment
Following are the instructions for the attached Assignment. On each tab in the excel sheet there are additional instructions explaining what she wants provided on each tab.
If the qualified final output from the production is less than the demand, the firm has to outsource from a more expensive source to cover the gap. The corresponding cost is $9.5 per unit. If the qualified output is more than the demand, the firm can salvage the leftover at the unit price of $4.
The firm has the historical data on the production yield rate, which can be used to estimate the distribution of the random yield rate.
Answer the following questions using the Data tab on excel:
Q1. Use the Histogram to estimate the probability distribution of random yield rate. Use the estimated production yield rate probability distribution, set up the model and determine the production quantity based on EMV criterion.
Q2. Use the estimated production yield rate probability distribution to set up the simulation model and determine the production quantity based on EMV criterion.
Q3. Assume the production yield rate satisfying the Normal Distribution. Use the Descriptive Statistics to estimate its Normal Distribution. Use the estimated Normal distribution to set up the simulation model and determine the production quantity based on EMV criterion.
Q1- find emv with 2 way data table
Q2 - run simulation
Q3- im not sure how to do this someone in class said its similiar to Q1 tab