Based on the lecture “Basics of Simulation,” work on the problem below on the Excel template provided. When you are finished, you should ONLY upload a single Excel file that contain only one workbook...

Based on the lecture “Basics of Simulation,” work on the problem below on the Excel template provided. When you are finished, you should ONLY upload a single Excel file that contain only one workbook of your answer. Once you submit your answer, you should see the solution Excel file.

Suppose that you are operating a restaurant and are planning to open for takeout breakfast service. Based on your study of the customer traffic around the area, you expect that the business would attract an average of 48 customers per hour during the breakfast hours from 6AM to 10 AM. You may not choose to operate throughout the four hours, while you would run at least 2 hours every day. The number of customers in hours follows a Poisson distribution with a mean of .

The cost of making a breakfast meal varies depending on the purchase cost of the materials. You estimate that this cost varies from $2 to $2.5 for each meal, with the most likely value being $2.2. You plan to charge $8 dollars for each meal. You expect to produce a minimum of 100 meals a day, while you would not be able to product more than 500 meals each day.

Questions:

1. Suppose you choose to operate 3 hours every day and produce 200 meals. Set up a simulation model using @Risk to define random input and output to evaluate the profitability of your business


2. Use data table to evaluate the possible scenarios of operating 1,2,3,4 hours and producing 100,150, 200, 250, 300, 350, 400, 450, 500 meals. Find the decision that generates the most average profit.