# MAT 540 WK 3 Assignment 1 - JET Copies Case Problem

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**Strayer University**

**MAT 540 WK 3 Assignment 1 - JET Copies Case Problem**

**Assignment #1: JET Copies Case Problem**

Read the "JET Copies" Case Problem on pages 678-679 of the text. Using simulation estimate the loss of revenue due to copier breakdown for one year, as follows:

- In Excel, use a suitable method for generating the number of days needed to repair the copier, when it is out of service, according to the discrete distribution shown.
- In Excel, use a suitable method for simulating the interval between successive breakdowns, according to the continuous distribution shown.
- In Excel, use a suitable method for simulating the lost revenue for each day the copier is out of service.
- Put all of this together to simulate the lost revenue due to copier breakdowns over 1 year to answer the question asked in the case study.
- In a word processing program, write a brief description/explanation of how you implemented each component of the model. Write 1-2 paragraphs for each component of the model (days-to-repair; interval between breakdowns; lost revenue; putting it together).
- Answer the question posed in the case study. How confident are you that this answer is a good one? What are the limits of the study? Write at least one paragraph.

The break down for the copier James estimated that the between breakdowns was probably between 0 and 6 weeks, with the probability increasing the longer the copier went without breaking down. Next, they needed to know how long it would take to get the copier repaired when it broke down. There is a service contract with the dealer that guaranteed prompt repair service. However, Terri gathered some data from the college of business from which she developed the following probability distribution of repairs times:

Repair Time (days) -----Probability

Finally, they needed to estimate how much business they would lose while the copier was waiting for repair. They had vague idea of how much business they sell between 2,000 and 8,000 copies per day at $ per copy. However they had no idea about what kind of probability distribution to use for this range of values. Therefore they decided to use a uniform probability distribution between 2,000 and 8,000 copies to estimate the number of copies they would sell per day. James decided that if their loss of revenue due to machine downtime during 1 year was $12,000 or more they should purchase a backup copier. Thus they needed to simulate the breakdown and repair process for a number of years to obtain an average annual loss of revenue. However before programming the simulation model, they decided to conduct a manual simulation of this process for 1 year to see if the model was working correctly. Perform this manual simulation for Jet Copies and determine the loss of revenue for 1 year.

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