Quantative Methods for Business. Managerial and scientific report Best Bike Ltd. Simulation with Excel Cristal Ball.

Table of contents. Managerial Report 1.Introduction Best cycles Ltd. designs, produces and markets a wide soma of bicycles. Currently it is evaluating cardinal b ar-assed product proposals that have reached the net planning stage, namely a road- and mountain bike. BestBikes Ltd. can simply produce one of the two proposed bikes. BestBikes expects to select the bike with the highest refund on coronation (ROI) and wants to assign the amount of risk. The calculation of the ROI dimension by BestBikes Ltd. for both proposals gives close identical results and in that locationfore much in depth digest is required. With almost equal ROI ratios the incur risk and the impact of these risks on the spread in the manageable ROI becomes significant. lane Bike softwood Bike Forecasted level best sales4,000Forecasted maximum sales2,500 Sales price2,400Sales price3,600 Initial investment funds240,000Initial investment280,000 Fixed equal60,000Fixed cost100,000 Variable cost1,33 3Variable cost1,600 Table 1.1: attached figures for road and Mountain Bike 1 2.Calculating ROI The uncertainties that are pregnant for this investment are: The sales volume The investment The uncertain cost of each product The initial investment for the Road Bike has a ordinary distribution with a spurious of 240,000 and a threadbare deviation of 20,000. The protean cost has of the Road Bike has a triangular distribution with min. and max.

cherish 750 and 2,000 individually and the most likely value set of 1,250. For the Mountain Bike the initial investment has a triangular distribution wit h min. and max. value of 100,000 and 600! ,000 respectively and the most potential value set of 150,000. The variable costs of the Mountain Bike follow a normal distribution with mean of 1.600 and standard deviation of 600. When using crystallizing Ball there is a possibility to develop a simulation type which enables you to give insight in the investment problem that BestBike encounters. Stated down the stairs are the... If you want to get a full essay, tell apart it on our website: OrderCustomPaper.com

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