Exam 16: Simulation

Question

As the owner of a rent-a-car agency you have determined the following statistics: The gross profit is $40 per car per day rented.When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost.Each day a car is unused costs you $5 per car.Your firm initially has 4 cars. Potential Rentals Daily Probability Rental Duration Probability 0 .10 1 day .50 1 .15 2 day .30 2 .20 3 days .15 3 .30 4 days .05 4 .25 a. Conduct a 10 -day simulation of this business using Row #1 bel ow for demand and Row #2 below for rental length. $As the owner of a rent-a-car agency you have determined the following statistics: The gross profit is $40 per car per day rented.When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost.Each day a car is unused costs you $5 per car.Your firm initially has 4 cars. \begin{array} { c c c c } \begin{array} { c } \text { Potential } \\ \text { Rentals Daily } \end{array} & \text { Probability } & \begin{array} { c } \text { Rental } \\ \text { Duration } \end{array} & \text { Probability } \\ \hline 0 & .10 & 1 \text { day } & .50 \\ 1 & .15 & 2 \text { day } & .30 \\ 2 & .20 & 3 \text { days } & .15 \\ 3 & .30 & 4 \text { days } & .05 \\ 4 & .25 & & \end{array} a. Conduct a 10 -day simulation of this business using Row #1 bel ow for demand and Row #2 below for rental length. b. If your firm can obtain another car for \$ 200 for 10 days, should you take the extra car?$ b. If your firm can obtain another car for

\$ 200

for 10 days, should you take the extra car?

The term Monte Carlo simulation refers to any simulation that involves

Introduction

Introduction to Probability

Probability Distributions

Decision Analysis

Utility Game Theory

Time Series Analysis Forecasting

Intro to Linear Programming

LP Sensitivity Analysis

LP Applications

Distribution Network Models

Integer Linear Programming

Advanced Optimization Applications

Project Scheduling

Inventory Models

Waiting Line Models

Markov Processes

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