Essay on Jet Copies

803 Words Feb 10th, 2012 4 Pages
Jet Copies a Case Study
Jet Copies is a small business that was started by three friends to provide copy services to students at State University. To accomplish this they borrowed from one of the partners parents to purchase a high end copy machine. But after purchasing the copy machine they found that it was not as reliable as they were led to believe. The partners wanted to find out how long and how often the copier would be out of service. They also wanted to know how much money they would lose when the copier was out of service. If the copier was out of service so long that they would lose more than 12,000 dollars they would purchase a backup unit. To accomplish this we will use Microsoft Excel to create a statistical analysis of a
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A business owner would rather know how many days between a breakdown. The data provided stated that the breakdowns would occur between 0- 5 weeks, or rather 0-35 days. We must calculate the number of good days between breakdowns. To accomplish this in excel we again use the RAND() command along with a mathematical equation to denote 35 possible days (5 weeks), the command looks like this TRUNC((C2)*(35-1)+1), where C2 is the random number generated previously. The TRUNC command is used to truncate the result to a whole number.
Lost revenue due to breakdowns
In any business profit is the name of the game. A breakdown of a key component of a business results in lost revenue or sales. To compute the amount of revenue that was lost due to a breakdown we need to know a few things. First how long was it broken, for this simulation it is the amount of time needed to repair the copier as was shown above using the LOOKUP function in excel. Second how many items were produced; since every day is different we cannot just use an average and hope for the best result. We must calculate the losses, in the example we are given a range of 2000-9000 copies are produced per day at a cost of 10 cents a copy. To calculate this we again use the RAND () function to generate a random number for use in the calculations. To satisfy the range of copies possible we have a base of 2000 copies with the possibility of up to 7000

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