CMA Final · Strategic Cost Management · Simulation
A Nashik vendor buys 200 perishable units daily at ₹25 each and sells at ₹40. Unsold units are disposed of at ₹10 each. Demand is 100 units (probability 0.3), 200 units (0.5) or 300 units (0.2). Using random numbers 00-99 with intervals 00-29, 30-79 and 80-99 respectively, the four days' random numbers are 05, 55, 91 and 30. What is the total simulated profit?
Total simulated profit is ₹9,000. Demand is 100, 200, 300 and 200 units, so sales are capped at the 200 units stocked. Day 1 breaks even after salvage on 100 unsold units, and each of the other three days earns ₹3,000.
- A₹9,000Correct
- B₹8,000
- C₹12,000
- D₹6,000
Explanation
Demands are 100, 200, 300, 200, so sales are 100, 200, 200, 200 units. Day 1: 4,000 + 1,000 salvage − 5,000 = 0. Each other day: 8,000 − 5,000 = 3,000, giving 9,000 in total. ₹12,000 wrongly ignores the loss on the unsold units on day 1.
Did you get it right without looking?
One question tells you little. A timed set on Simulation shows your real accuracy, how long you take and where you lose marks.
More Simulation questions
- A Kolkata firm simulates inventory. Daily demand: 1 unit (0.4), 2 units (0.6), allocated as 00-39 and 40-99. Opening stock is 3 units. Each …
- A linear congruential generator uses X(n+1) = (5 × X(n) + 3) mod 16, with seed X(0) = 7. What is the third generated number, X(3)?
- Daily demand for a product is simulated with these random-number ranges: 00-29 = 10 units, 30-79 = 20 units, 80-99 = 30 units. Random number…
- In a simulation of machine breakdowns for an Ahmedabad plant, the simulated repair times for five breakdowns are 2, 4, 3, 5 and 1 hours. If …
- In a single-server queue simulation at a Pune service counter, four customers arrive at minutes 0, 2, 3 and 8, with service times of 4, 3, 2…
- In a Monte Carlo simulation of daily demand for a Pune bakery, the cumulative probabilities are: 10 loaves 0.20; 20 loaves 0.50; 30 loaves 0…