Calambra Olive Oil (B)
6 Pages Posted: 21 Oct 2008
In the B case, Frank Lockfeld builds a spreadsheet model that captures the essence of the discussion in the A case (UVA-QA-0440). As this is a difficult model to build, it is best to use the B case early in a module on Monte Carlo simulation. The model, which is also available electronically and should be distributed with the B case, is set up to evaluate scenarios and compare (in multiple columns) the impact of different order quantities for the specified scenario. To turn the model into a simulation, students need only replace the scenario drivers with probability distributions. The C case (UVA-QA-0551) may be used in place of (not in addition to) the B case; the C case uses data tables instead of evaluating different order quantities in columns.
Keywords: decision theory, simulation, spreadsheets
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