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    Ava Princy Thomas
    2 views11 pages
    The document appears to contain data and analysis regarding demand forecasting and inventory management for a product. It includes a demand distribution curve with a mean demand of 20,000 units and standard deviation of 5,000 units. It then models potential profits and losses for different order quantities under worst, most likely, and best case demand scenarios. Graphs visualize the projected profit or loss outcomes. The analysis aims to determine the optimal order quantity.

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    Assignment 2

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    The document appears to contain data and analysis regarding demand forecasting and inventory management for a product. It includes a demand distribution curve with a mean demand of 20,000 units and standard deviation of 5,000 units. It then models potential profits and losses for different order quantities under worst, most likely, and best case demand scenarios. Graphs visualize the projected profit or loss outcomes. The analysis aims to determine the optimal order quantity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views11 pages

    Assignment 2

    Uploaded by

    Ava Princy Thomas
    The document appears to contain data and analysis regarding demand forecasting and inventory management for a product. It includes a demand distribution curve with a mean demand of 20,000 units and standard deviation of 5,000 units. It then models potential profits and losses for different order quantities under worst, most likely, and best case demand scenarios. Graphs visualize the projected profit or loss outcomes. The analysis aims to determine the optimal order quantity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 11

    X

    P(X)
    0 2.67660E-008
    1000
    #NAME?
    2000
    #NAME?
    3000
    #NAME?
    4000
    #NAME?
    5000 8.86370E-007
    6000
    #NAME?
    7000
    #NAME?
    8000
    #NAME?
    9000
    #NAME?
    10000
    #NAME?
    11000
    #NAME?
    12000
    #NAME?
    13000
    #NAME?
    14000
    #NAME?
    15000
    #NAME?
    16000
    #NAME?
    17000
    #NAME?
    18000
    #NAME?
    19000
    #NAME?
    20000
    #NAME?
    21000
    #NAME?
    22000
    #NAME?
    23000
    #NAME?
    24000
    #NAME?
    25000
    #NAME?
    26000
    #NAME?
    27000
    #NAME?
    28000
    #NAME?
    29000
    #NAME?
    30000
    #NAME?
    31000
    #NAME?
    32000
    #NAME?
    33000
    #NAME?
    34000
    #NAME?
    35000
    #NAME?
    36000
    #NAME?
    37000
    #NAME?
    38000
    #NAME?
    39000
    #NAME?

    Demand
    Me an = 20,000

    5000

    10000

    15000

    No. of Un

    0000

    Demand Distribution
    Me an = 20,000

    Standard Deviation =
    5000

    15000

    20000

    No. of Units in Demand

    25000

    30000

    35000

    40000

    45000

    000

    45000

    No. Of Units In Demand P(Demand) P(Stock Out)


    15000 0.1586552539 0.8413447461
    18000
    #NAME?
    #NAME?
    24000
    #NAME?
    #NAME?
    28000
    #NAME?
    #NAME?

    PROFIT OR LOSS COMPUTATION


    Order Quantity
    Worst Case Sales
    Surplus
    15000
    10000
    18000
    10000
    24000
    10000
    28000
    10000

    Profit
    5000
    80000
    8000
    80000
    14000
    80000
    18000
    80000

    Order Quantity
    Most Likely Sales
    Stock out
    15000
    20000
    18000
    20000
    24000
    20000
    28000
    20000

    5000
    2000
    0
    0

    Surplus
    0
    0
    4000
    8000

    Order Quantity
    Best Case Sales
    Stock Out
    15000
    30000
    18000
    30000
    24000
    30000
    28000
    30000

    15000
    12000
    6000
    2000

    Profit
    120000
    144000
    192000
    224000

    GRAPHICAL ANALYSIS
    A. Worst Sales Scenario : Sales of 10000
    Order Quantity Net Profit Or Loss
    15000
    25000
    18000
    -8000
    24000
    -74000
    28000
    -118000

    Profit or Loss Distribution


    40000
    20000
    0
    14000
    -20000

    Net Profit
    or Loss

    16000

    18000

    20000

    22000

    24000

    -40000
    -60000
    -80000
    -100000
    -120000
    -140000

    Estimated Order Quantities

    26000

    28000

    Net Profit
    or Loss

    -60000
    -80000
    -100000
    -120000
    -140000

    Estimated Order Quantities

    B. Most Likely Sales Scenario


    Order Quantity Net Profit Or Loss
    15000
    120000
    18000
    144000
    24000
    116000
    28000
    72000

    Profit or Loss Distribution


    160000
    140000
    120000
    100000

    Projected Profit

    80000
    60000
    40000
    20000
    0
    14000

    16000

    18000

    20000

    22000

    24000

    Estimated Order Quantities

    C. Best Sales Scenario


    Order Quantity Profit
    15000
    18000
    24000
    28000

    120000
    144000
    192000
    224000

    Profit or Loss Distribution


    250000
    200000
    150000

    Profit

    100000

    26000

    28000

    30000

    Profit or Loss Distribution


    250000
    200000
    150000

    Profit

    100000
    50000
    0
    14000

    16000

    18000

    20000

    22000

    24000

    Estimated Order Quantities

    26000

    28000

    30000

    Loss

    Net Profit Or Loss


    -55000
    25000
    -88000
    -8000
    -154000
    -74000
    -198000
    -118000

    Profit

    Loss
    120000
    144000
    160000
    160000

    0
    0
    -44000
    -88000

    istribution

    22000

    24000

    Order Quantities

    26000

    28000

    30000

    Net profit or Loss


    120000
    144000
    116000
    72000

    Order Quantities

    ibution

    22000

    24000

    der Quantities

    26000

    28000

    30000

    26000

    28000

    30000

    Sales Scenario Ordered Quantity


    Projected Profit
    10000
    7000
    56000
    20000
    14000
    112000
    30000
    21000
    168000

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