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502 CHAPTER 12 SIMULATION
Figure 12.4 Excel Worksheet for the PortaCom Problem
EXCEL file
PORTACOM
how the profit values are distributed over their range and what profit values are
most likely.
For practise working The simulation results help PortaCom’s management better understand the
through a simulation profit/loss potential of the PortaCom portable printer. The 0.1020 probability of
problem, try Problems 7
and 9. a loss may be acceptable to management given a probability of almost 0.80 (see
Figure 12.5) that profit will exceed E250 000. On the other hand, PortaCom might
want to conduct further market research before deciding whether to introduce the
product. In any case, the simulation results should be helpful in reaching an
appropriate decision. The Management Science in Action, Meeting Demand Levels
at Pfizer, describes how a simulation model helped find ways to meet increasing
demand for a product.
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