Question

Provide a detailed solution in Excel.

18. Walther has a roadside produce stand where he sells oats, peas, beans, and barley. He buys these products at per-pound wholesale prices of, respectively, $1.05, $3.17, $1.99, and $0.95; he sells them at per-pound retail prices of, respectively, $1.29, $3.76, $2.23, and $1.65. Each day the amount demanded (in pounds) could be as little as zero for each product, and as much as 10, 8, 14, and 11 for oats, peas, beans, and barley, respectively; he sells only whole-pound amounts, no partial pounds. Assume a discrete uniform distribution for daily demand for each product over its range; assume as well that Walther always has enough inventory to satisfy all demand. The summer selling season is 90 days, and demand each day is independent of demand on other days. Create a spreadsheet simulation that will, for each day as well as for the whole season, simulate Walther's total cost, total revenue, and total profit.

Answer 1

Particulars	Oats	Peas	Beans	Barley
Purchase price per unit	1.05	3.17	1.99	0.95
Selling price per unit	1.29	3.76	2.23	1.65
Maximum Qty demanded	10	8	14	11
For Each Day
Total cost	10.5	25.36	27.86	10.45
Total revenue	12.90	30.08	31.22	18.15
Total Profit	2.40	4.72	3.36	7.70
For season
No. of days	90	90	90	90
Total cost	945	2282.40	2507.40	940.5
Total Revenue	1161	2707.2	2809.80	1633.50
Total profit	216	424.8	302.40	693