A.1.a. Average materials cost per unit

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A.1.a. Average materials cost per unit

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Cost

Probability

Average Cost

Material

$33.00

0.02

$0.66

$35.00

0.13

$4.55

$38.00

0.25

$9.50

$39.00

0.6

$23.40

Average Material Cost/Unit

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$38.11

Labour

$22.00

0.02

$0.44

$23.00

0.23

$5.29

$24.00

0.02

$0.48

$25.00

0.56

$14.00

$28.00

0.17

$4.76

Average Labour Cost/Unit

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$24.97

Utilities

$3.00

0.29

$0.87

$4.00

0.59

$2.36

$6.00

0.12

$0.72

Average Utility Cost/Unit

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&nbsp

$3.95

Total Cost/Unit

$67.03

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Average cost/Unit = Summation of (cost of that unit xprobability) while Total Cost/Unit = Average materialcost/Unit + Average Labour Cost/Unit + Average Utility Cost/Unit

Hence,

A.1.a. Average material cost per unit = $38.11A.1.b.Average labour cost per unit = $24.97A.1.c. Averageutility cost per unit = $3.95A.1.d. Total average costper unit = $67.03

A.2. Random Interval Tables

The random intervals tables below were generated using the belowformula so as to generate random numbers that were used in simulationtemplate.

  1. In order to generate the cost of materials using the random numbers used in populating the column of the material cost per unit, a table similar to the one below was created.

  2. Cumulative probability is easily populated through continuous summation of the probability values. Then, the random number intervals is determined from cumulative probability.

  3. A class interval in created where the current cumulative probability becomes the lower class boundary for the class interval that is following

  4. The determination of material cost per unit involves taking the random number that corresponds to simulation that is currently being run. For instance, for the first trial, a random number is take, say 76. Check from the class intervals, this number lies between 21 and 99. Thereafter, the corresponding cost to that class interval is $39.

  5. This is repeated for all the trials in simulation. This populates the columns with the appropriate random interval table.

Materials

Cost

Probability

Cumulative probability

Random Number Interval

$33.00

0.02

0.02

01-01

$35.00

0.13

0.15

02-14

$38.00

0.25

0.4

15-39

$39.00

0.6

1

40-99

Labour

Cost

Probability

Cumulative probability

Random Number Interval

$22.00

0.02

0.02

01-01

$23.00

0.23

0.25

02-24

$24.00

0.02

0.27

25-26

$25.00

0.56

0.83

27-82

$28.00

0.17

1

83-99

Utility

Cost

Probability

Cumulative probability

Random Number Interval

$3.00

0.29

0.29

0-28

$4.00

0.59

0.88

29-87

$6.00

0.12

1

88-99

B.1. Selling price per unit = Averagetotal cost per unit + Mark-up price

=$67.03 + $20

=$87.03

Reference

Group Decision-Making: Fuzzy Models (2010). Fuzzy MulticriteriaDecision-Making Models, Methods and Applications, 263-91.