Use the Information Below to Answer the Following Question(s) We Assume That the Production (Demand)volume Is Normally Distributed with the Following

question 31

Multiple Choice

Use the information below to answer the following question(s) .
Consider the following spreadsheet for an outsourcing decision model.
$$\begin{array} { | l | l | l | } \hline 1 & \ { \text { A } } & \text { B } \\\hline 2 & \text { Outsourcing Decision Model } & \\\hline 3 & \text { Data } & \\\hline 4 & & \\\hline 5 & \text { Manufactured in-house } & \\\hline 6 & \text { Fixed cost } & \$ 60,000 \\\hline 7 & \text { Unit variable cost } & \$ 130 \\\hline 8 & & \\\hline 9 & \text { Purchased from supplier } & \\\hline 10 & \text { Unit cost } & \$ 180 \\\hline 11 & & \\\hline 12 & \text { Demand volume } & \$ 1,600 \\\hline 13 & & \\\hline 14 & \text { Model } & \\\hline 15 & & \\\hline 16 & \text { Total manufacturing cost } & \\\hline 17 & \text { Total purchased cost } & \\\hline 18 & & \\\hline 19 & \text { Difference } & \\\hline 20 & \text { Decision } & \\\hline\end{array}$$
We assume that the production (demand) volume is normally distributed with a mean of 1,000 and a standard deviation of 100.For the unit cost, select the triangular distribution.It has a minimum value of $150, most likely value of $165, and a maximum value of $190.The number of trials per simulation is equal to 5,000 at a Sim.Random Seed of 1.Run the simulation and answer the following question(s) using the Risk Solver Platform.
-What is the value of mean obtained from the simulation results? [Hint: Choose the nearest answer]

• A)$18,385
• B)$21,663
• C)$14,894
• D)$23,946

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Definitions:

Manufacturer-owned Brands

These are brands that are owned and managed by the manufacturers themselves, allowing for direct control over product quality and marketing strategies.

Brand Positioning

The strategy of creating a unique impression in the customer's mind so that the customer associates something specific and desirable with your brand that is distinct from rest of the marketplace.

Western-sounding Brand Names

Brand names that are designed to evoke Western (particularly American or European) culture or values, often used to appeal to global markets.

Store Brands

These are products marketed and sold under the retailer's brand name rather than that of a manufacturer.