Exhibit 12.5 The Following Questions Use the Information Below

question 69

Short Answer

Exhibit 12.5
The following questions use the information below.
The owner of Sal's Italian Restaurant wants to study the growth of his business using simulation. He is interested in simulating the number of customers and the amount ordered by customers each month. He currently serves 1000 customers per month and feels this can vary uniformly between a decrease of as much as 5% and an increase of up to 9%. The bill for each customer is a normally distributed random variable with a mean of $20 and a standard deviation of $5. The average order has been increasing steadily over the years and the owner expects the mean order will increase by 2% per month. You have created the following spreadsheet to simulate the problem.
-The spreadsheet model for Sal, from Exhibit 12.5, has been run 300 times to produce the following output. What is the best case scenario for Sal based on this output? Instructions: Answer the following questions using the Analytic Solver Platform Excel add-in.

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Definitions:

Programmed Solution

Predetermined responses or solutions to routine problems or issues.

Rules Of Thumb

Simple, general principles or guidelines that are not based on precise calculations, but are used to make quick decisions or estimations.

Routines

Repetitive sequences of actions regularly followed in daily operations or processes.

Well-Known

Being widely recognized or familiar to many people.