Simulation Questions Harvard Case Solution & Analysis

Simulation Questions Case Study Analysis

In addition to this, if the outsourcing increases by 1000 and further 1000 up to the maximum of 5000, then the point where the profits maximize, is the outsourcing cases of 3000 from the external suppliers, which gives the maximum profits of 12461 dollars as shown in following  table:

Table 2:

Part 2:

By using the linear programing method in excel; the advertisement fund of 100,000dollars need to be allocated in four markets, in order to maximize the sales revenue, which are as follows:

Table 1:

If the distributor adds additional 1000 dollar funds in the advertisement budget, then the advertisement dollars 101,000 funds that need to be allocated in four markets to maximize the sales revenue, are as follows:

Table 2:

Part 3:

After creating the spreadsheet that replicates 500 outcomes; the average revenue amount is 8782 dollars, while the probability that generates the total sales more than 10000 dollars to get the 5000 bonus, is 31.6%. In addition to this, as shown in the below mentioned table; the total average revenue is 8782 dollars, which is lower than 10000 dollars to get 5000 bonus, so the restaurant owner will not be willing to spend money on sales incentives in the form of sales discount, to get more customers to earn the bonus amount.

Table 1:

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