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Taylor Introms12 PPT 14
Taylor Introms12 PPT 14
Chapter 14
Figure 14.2
Numbered roulette wheel
Copyright © 2016 Pearson Education, Ltd. 14-8
Monte Carlo Process
Use of Random Numbers (5 of 10)
i1
where:
x demand value i
i
P( x ) probability of demand
i
Exhibit 14.1
Copyright © 2016 Pearson Education, Ltd. 14-17
Simulation with Excel Spreadsheets (2 of 3)
Enter =VLOOKUP(F6,Lookup,2)
in G6 and copy it to G7:G20
Enter =4300*G6
in H6 and copy
it to H7:H20
= AVERAGE(G6:G20)
Generate random numbers for cells
F6:F20 with the formula
=RAND( ) in F6 and copy it to
Exhibit 14.2
F7:F20
Copyright © 2016 Pearson Education, Ltd. 14-18
Simulation with Excel Spreadsheets (3 of 3)
=G6*50 is entered in
Shortages are computed by entering cell L6 and copied to
=MIN(G6-H6,0) in I6 and copying to I7:I105 L7:l105
Copyright © 2016 Pearson Education, Ltd. Exhibit 14.4 14-20
Computer Simulation with Excel Spreadsheets
Decision Making with Simulation (2 of 2)
Order size of two laptops each week.
New formula for two
laptops ordered per week
Exhibit 14.5
Copyright © 2016 Pearson Education, Ltd. 14-21
Simulation of a Queuing System
Burlingham Mills Example (1 of 3)
Copy
=VLOOKUP(H14,Lookup2,2
) to I14:I23
Arrival times are generated
by entering =E14+D15 in =AVERAGE(G14:G23)
E15 and copying to E16:E23 Exhibit 14.6
Copyright © 2016 Pearson Education, Ltd. 14-25
Continuous Probability Distributions
Confidenc
e limits
Exhibit 14.10
Copyright © 2016 Pearson Education, Ltd. 14-38
Crystal Ball
Overview
Many realistic simulation problems contain more complex
probability distributions than those used in the examples.
Profit Z = vp - cf – vc
break-even volume v = cf/(p - cv)
= 10,000/(23-8)
= 666.7 pairs.
2. Click on “Define
Assumption”
=C4*C5-C6-(C4*C7)
Exhibit 14.11
Copyright © 2016 Pearson Education, Ltd. 14-42
Crystal Ball
Simulation of Profit Analysis Model (6 of 13)
2. Click “Enter” to
3. Click on “OK” to return
configure distribution in
to the spreadsheet
window
Copyright © 2016 Pearson Education, Ltd. Exhibit 14.12 14-43
Crystal Ball
Simulation of Profit Analysis Model (7 of 13)
Exhibit 14.13
Copyright © 2016 Pearson Education, Ltd. 14-44
Crystal Ball
Simulation of Profit Analysis Model (8 of 13)
Enter three
estimates
2. Type in units
Exhibit 14.15
Copyright © 2016 Pearson Education, Ltd. 14-46
Crystal Ball
Simulation of Profit Analysis Model (10 of 13)
Exhibit 14.16
Copyright © 2016 Pearson Education, Ltd. 14-47
Crystal Ball
Simulation of Profit Analysis Model (11 of 13)
2. Go to the
“Sampling” screen to 1. Enter the number
enter the seed number of trials
Exhibit 14.17
Copyright © 2016 Pearson Education, Ltd. 14-48
Crystal Ball
Simulation of Profit Analysis Model (12 of 13)
Click here to
repeat the same
simulation
Exhibit 14.18
Copyright © 2016 Pearson Education, Ltd. 14-49
Crystal Ball
Simulation of Profit Analysis Model (13 of 13)
2. Click here to start 1. Click here to establish the number
the simulation of trials and the seed number
Exhibit 14.19
Copyright © 2016 Pearson Education, Ltd. 14-50
Crystal Ball
Simulation of Profit Analysis Model (13 of 13)
Click on “View” to
return to the
Frequency window
Exhibit 14.20
Copyright © 2016 Pearson Education, Ltd. 14-51
Crystal Ball
Simulation of Profit Analysis Model (14 of 14)
Exhibit 14.21
Move arrow to
“0.00” or set lower
limit equal to 0.00
■ Queuing
■ Inventory Control
■ Production and Manufacturing
■ Finance
■ Marketing
■ Public Service Operations
■ Environmental and Resource Analysis
Step 2 continued: