Jet Copier Case Problem

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In the Jet Copier case problem there was a few questions that the owners (James, Ernie and Terri) wanted to before they decided if they would purchase an extra copier as a back up. The questions are all answered in the excel spreadsheet attached but I will go into more detail below. Model number of days to repair To find the days to repair, the VLOOKUP function was used in cell J5 as “=VLOOKUP (I5, B6:C9, 2)”. This means the random number in cell I5 is placed in a range of repair time (either 1,2,3 or 4). After the initial cell formula (I5) was done the next step was to copy down to automatically generate the reaming numbers in that column. Model number of weeks between breakdowns Find the breakdowns time in between weeks, first generate random numbers using the function =RAND () and press enter and copy down. The next step is to use the =6*SQRT of Random number and then copy down. In the cumulative time in between breakdown you start in the first cell in the time between break downs and in this case use function =G5 in the cell H5 this will give you the same number that is in G5. The next step is to use the function (in this case) =SUM (H5+G5) and copy down to 52 weeks. Model lost revenue due to breakdown When going through the problem finding the amount of copies sold per day, copies lost and revenue I then found the estimated revenue lost per year by dividing the revenue by 365 days, which gave me the average lost revenue. The questions that James, Ernie and Terri is, per Taylor III, B 2011: “Perform this manual simulation for JET Copies and determine the loss of revenue for 1 year.” (Pg. 679) If the loss of revenue were $12,000 or more they would purchase the backup copier. In this case the loss is under their specified amount so therefore they will not need the back up copier. How Confident am I about my decision and what was the

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