country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

QBUS3330 Business Analytics Methods Of Decision Analysis

tag 0 Download5 Pages 1,085 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT
  • Course Code: QBUS3330
  • University: The University Of Sydney
  • Country: Australia

Question:

Write a report along the following guidelines. Please make sure your policy suggestions are based on simulations with at least 1000 iterations for each case. You are required to use @Risk.

1. Provide a description of your spreadsheet model. Explain how each problem input was computed and modelled using the appropriate distribution. Also provide a description of how you compute the various characteristics of the system (total demand, the number of cars sold, the number of unsatisfied customers, etc).

2. If you are restricted to importing the same number of cars every month, what would be your optimal strategy? Describe the profit and other relevant characteristics of this policy.

3. If you are allowed to import a different number of cars every month, what would be your optimal ordering policy? Describe the profit and other relevant characteristics of this policy. Compare this policy to that in (2).

4. Assume you decided to take orders 6 months ahead and that the number in the first row of the above table were the actual demands. What would be your optimal ordering policy? Would your mean profit increase?
 
 

Answer:

Introduction

Demand forecasting is treated as one of the important aspects of revenue management. In case of luxury car segment, it is further essential as any deviation leads several consequences, like if the number of cars imported is less than the demand of a specific month, the company will lose a huge amount of revenue and again if the number of cars imported are greater than demand for a specific month, there will be additional holding cost. Under such circumstances, it is imperative to conduct extensive amount of data analysis basis the historical data so that a specific number of cars are imported, which will help the organisation to reduce the risk of loss.

In this report, a study has been performed on behalf of a dealer of a luxury car in Australia market. The study has been performed using @Risk software and excel platform to forecast monthly demand over the next six months from January to June. The study has considered few information provided as a starting point and performed a three step analyses as described below:

 

Overview of the spreadsheet model

The excel model is built assuming below aspects:

  1. At any given month an order has to be placed and the shipment arrives before the actual demand is known.  
  2. You can ignore the duration stock is held during a given month. Holding costs are only incurred on the end of the month stock.  
  3. Assume that cars not sold in June can be returned to the importer for $15,000
  4. Minimum number of car will be imported in any month is 8 and maximum car will be imported in that month is 15.

The excel model consist of three segments, the first segment is the model building part, the second one is information provided as a starting point and the third part is all about calculations:

In the model building stage, demand, selling price and import cost and chances of unsatisfied customers are estimated with the help of @Risk software. The demand estimation is followed Poisson distribution, import cost, selling price are followed normal distributions and chances of unsatisfied customers are followed discrete distribution.

In the opening stock row, excel formula is used to calculate the opening stock for a particular month. As given, the opening stock for January is 5 cars. From February to June, the opening stock is calculated using below formula:

Here, D6 represents the demand of cars in previous month, D13 customer waited in the previous month, D4 opening stock of previous month, D5 is number of cars imported in the previous month.

Similarly, the excel function is used to find the unsatisfied customers, customer will wait for next month etc. In the calculation segment, cost and revenue for a particular month is calculated and thus the total profit as shown below:

The last row is used to estimate the number of car will be imported with the help of risk optimizer model. Three different risk optimizer models are built to perform specific task.

Same number of cars imported over the next six month

Here, the objective was to find out the number of cars will be imported to meet demand for luxury car and thus to maximize profit. As per given information, the number of car will be imported are same for each of the six month. Considering this constraint, the risk optimizer model was defined as follow:

In @Risk software, 1000 iteration were performed to find out the optimum profit level and below are the results:

 

 

From the above risk optimization log, it can be said that if the company wants to import same number of cars over the next six month, then they have to import 12 cars each and every month to maximize the profit level and the total estimated profit will be $11,06,000.00

Different number of cars imported over the next six month

Here, the objective was to find out the number of cars will be imported to meet demand for luxury car and thus to maximize profit. As per given information, the number of car will be imported are different for each of the six month. Considering this constraint, the risk optimizer model was defined as follow:

In @Risk software, 1000 iteration were performed to find out the optimum profit level and below are the results:

 

 

From the above risk optimization log, it can be said that if the company wants to import different number of cars over the next six months, then they have to import 15 cars over the first five months and in last month they have to import only 4 cars to maximize the profit level and the total estimated profit will be $13,78,788.45

Specific Demand:

Here, the objective was to find out the number of cars will be imported to meet demand for luxury car and thus to maximize profit. As per given information, the number of car will be imported are different for each of the six month. However, the demand for each month will be fixed instead of normally distributed. Considering these constraint, the risk optimizer model was defined as follow:

In @Risk software, 1000 iteration were performed to find out the optimum profit level and below are the results:

 

From the above risk optimization log, it can be said that if the company wants to import different number of cars over the next six months, then they have to import 5 cars in the month of January, 12 cars in the month of February, 15 cars in the month of March, 15 cars in the month of April, 13 cars in the month of May, and in last month they have to import only 9 cars to maximize the profit level and the total estimated profit will be $11,29,000.00

Conclusion

Thus to conclude, it can be said that the dealer has to consider several aspects to gain maximum profit and each of the cases, the number of cars will be different basis the condition given.

 

References

Arias, M. B., & Bae, S. (2016). Electric vehicle charging demand forecasting model based on big data technologies. Applied energy, 183, 327-339.

do Rego, J. R., & de Mesquita, M. A. (2015). Demand forecasting and inventory control: A simulation study on automotive spare parts. International Journal of Production Economics, 161, 1-16.

Qian, L., & Soopramanien, D. (2015). Incorporating heterogeneity to forecast the demand of new products in emerging markets: Green cars in China. Technological Forecasting and Social Change, 91, 33-46.

Sak, H., Yang, G., Li, B., & Li, W. (2016). Modeling Dependence Dynamics of Air Pollution: Pollution Risk Simulation and Prediction of PM $ _ {2.5} $ Levels. arXiv preprint arXiv:1602.05349.

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2019). Business Analytics Methods Of Decision Analysis. Retrieved from https://myassignmenthelp.com/free-samples/qbus3330-business-analytics-methods-of-decision-analysis.

"Business Analytics Methods Of Decision Analysis." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/qbus3330-business-analytics-methods-of-decision-analysis.

My Assignment Help (2019) Business Analytics Methods Of Decision Analysis [Online]. Available from: https://myassignmenthelp.com/free-samples/qbus3330-business-analytics-methods-of-decision-analysis
[Accessed 29 January 2020].

My Assignment Help. 'Business Analytics Methods Of Decision Analysis' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/qbus3330-business-analytics-methods-of-decision-analysis> accessed 29 January 2020.

My Assignment Help. Business Analytics Methods Of Decision Analysis [Internet]. My Assignment Help. 2019 [cited 29 January 2020]. Available from: https://myassignmenthelp.com/free-samples/qbus3330-business-analytics-methods-of-decision-analysis.


Get affordable papers now from MyAssignmenthelp.com. Here, you need to pay only a nominal amount for the essay. Even though the prices are low, we do not compromise on the quality part. Our experts run thorough plagiarism check on the papers before delivering it to you. Pay for your essay using safe and secure payment gateways like PayPal, credit/debit card or net banking. You can also use our essay typer tool for free of cost. It generates quality essays on your chosen topic in an instant. However, the paid service offers customisation of the essay as per your requirements.

Latest Operations Samples

MGMT6003-Operations Management In Emergency Department Of Hospitals

Download : 0 | Pages : 3
  • Course Code: MGMT6003
  • University: Laureate International Universities
  • Country: United States

Answer: Introduction There are different types of bottle necks and backlogs in the proper and efficient running of the hospital management. The efficient management of the hospitals is essential for the business to ensure their smooth running (Amaral & Costa, 2014). The following presentation will showcase the importance of smooth operations in the emergency department and how actually the operation goes on. The sheer fact that the emerge...

Read More arrow

POLI101 Introduction To Canadian Government

Download : 0 | Pages : 2
  • Course Code: POLI 101
  • University: The University Of British Columbia
  • Country: Canada

Answer: Porter, (2015) says that, even though many leaders in Canada have emphasized on the matter of gender equality, the country is yet to achieve the goal. For example, in the year 2015 when Justin Trudeau won the position of the Canadian prime minister, he appointed an equal number of males and females in her cabinet according to Breau, (2015). However, many reports still agree that effort to balance the gender in many government sectors i...

Read More arrow

BSBMGT517 Manage Operational Plan Assessment 1

Download : 0 | Pages : 7

Answer: Introduction The operational plan of the organization has a great role in the achievement of the different kind of objectives of the organization. The management of Glen Cameron Group has been prepared its operational plan based on the demands and needs of the clients. The demands and needs in this particular case are totally based on the customers. The operational plan of the particular business is prepared to arrange for a smooth tr...

Read More arrow

AVIA1401-Decision-Making Using An Aviation Example

Download : 0 | Pages : 8

Answer: The decision-making processes are often considered to be one of the most important parts in the smooth operations of the business organization. The key function of the management generally refers to the selection and the implementation of the proper decision that needs to be maintained within the concerned business organization (Beach and Lipshitz 2017). These decisions are known to be responsible for the proper implementation of the act...

Read More arrow Tags: Australia Arlington Management University of New South Wales 

QBUS3330 Business Analytics Methods Of Decision Analysis

Download : 0 | Pages : 5
  • Course Code: QBUS3330
  • University: The University Of Sydney
  • Country: Australia

Answer: Introduction Demand forecasting is treated as one of the important aspects of revenue management. In case of luxury car segment, it is further essential as any deviation leads several consequences, like if the number of cars imported is less than the demand of a specific month, the company will lose a huge amount of revenue and again if the number of cars imported are greater than demand for a specific month, there will be additional ...

Read More arrow
Next
watch

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,186,762

Orders

4.9/5

Overall Rating

5,057

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

234 Order Completed

100% Response Time

Samantha Ji

PhD in Chemistry with Specialization in Organic

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

755 Order Completed

95% Response Time

Douglas Cowley

Masters in Finance with Specialization in Audit

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

453 Order Completed

98% Response Time

Howard Asuncion

LLM in Criminal Law

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 4/5

2594 Order Completed

95% Response Time

Michael Johnson

Masters of MSc in Economics

Washington, United States

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

Expert provided good service and able to upload the answers within the specified time limit.

flag

User Id: 246827 - 28 Jan 2020

Australia

student rating student rating student rating student rating student rating

Previous feedback was for other order and the website itself, not the writer. This writer did a great job! Very appreciated

flag

User Id: 363978 - 28 Jan 2020

Australia

student rating student rating student rating student rating student rating

this assignment was perfect. i got A i encourage every one to use this website for help

flag

User Id: 235749 - 28 Jan 2020

Australia

student rating student rating student rating student rating student rating

enough information, on time and help me to get the good mark. thanks for your service

flag

User Id: 285394 - 28 Jan 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?