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JET Copies 1

JET Copies
Dr.Robert Joseph
Strayer University
Cheryl Barnett

JET Copies 2

James Banks had driven form Southgate to a Klecko's Copy Center. While waiting in line, he talk to
Robin. They notice that a lot of the customers were students from Southgate Apartment or other apartments that were close. They felt it was a waste of time and inconvenience to stand in line to make copies. Klecko's should move it operation near the State University since most of the customers in line was from the University. James Banks got an idea how to make some money by starting a copy business. James Banks, Ernie
Moore and Terrie Jones are friends that liver at the Southgate Apartments. They first purchase a reliability copier and name the business JET Copies. Ernie Moore did some research on the University copy machine, since the one that they purchase was similar to the University copy. He found out the University copy broke down frequently and how long it took between the days to repaired. This may cause them to lose revenue. James, Ernie, and Terri purchase a smaller backup copies to use when the main copier brake down. A simulation mode was develop to know how frequently the copier might break down and the time between breakdowns. James spoke with staff members in the college of business an estimated that the time between breakdowns was between 0 and 6 weeks and how long it take to get copier repaired when it broke down and Terri gather data from the college of business of repair time.
Repair Times (days) Probability
1 .20
2 .45
3 .25
4 .10 1.00 JET Copies 3 James, Erine, and Terri estimate how much business would lose while the copier needed repair. They estimated they would do between 2,000 and 8,000 copies per day at $.10 per copy. James, Ernie, and Terrie estimated if they lose revenue due to machine downtime for a year would be $12,000 or more. A simulation of Jet Copies can be done by random numbers given probability distributions.
The repair time(days) and probability that was given early was as p(x) p(x) cumulative probability and repair time
A random number R1 from between 0 and 1. The random number is less than or equal to .2 repair time is 1 it take 0.10, if random number is 0.2 it take repair time 0.58 and random number is 3 it take repair time 0.09 and random number 4 take repair time 0.61
Simulation for time between breakdown is RN2 from 0 to 6 weeks. x=>0. First week is 1.90 time between breakdown because it greater than 0 for the first week, second week it 4.57, third 1.83 ,fourth 4.72, fifth 4.06 and six 5.12. By adding all the number together and dividing by 52 week will give a year of 0.32. The total revenue loss for the year is x=revenue loss revenue

x=600xrn+200 give the revenue lost per breakdown for year is $826. This is base on the average number of breakdown per year divided by 52 weeks.
See Excel spread sheet attached.…...

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