The purpose of this assignment is to use analytics techniques to analyze a case problem.
Read Case Study 12.3 “Sound’s Alive Company” from the textbook.
Use Frontline Analytic Solver Platform to set up a simulation model and run a simulation for the case. Use the “Topic 3 Case Study Template” file as a starting point.
After the simulation is run, create statistical distributions to describe the discrete probability behavior (mean, standard deviation, etc.) of the Materials, Overhead, Tax Rate, and SG&A Rate discrete probability distributions.
In a 500-750 word summary to company management, address the following. Include relevant charts and graphs within your summary, as needed.
- Describe the case specific business requirements and how they can be communicated across all levels of the organization.
- Based on the simulation results, discuss the expected net profit for the years 2015 through 2018, and the expected NPV for this business venture.
- The Board of Trustees told Marissa that the stockholders would feel comfortable with this business venture if its NPV is at least $5 million. Discuss the chances that Sound’s Alive home theater venture will result in an NPV of $5 million or more.
- Discuss which discrete probability distribution has the most dispersion and explain why.
- Based on the NPV statistical distributions and other information gleaned from your analysis, discuss the specific prescribed course of action you would recommend to company management and justify your recommendations. Include discussion of how the proposed analytics solutions can optimize organizational performance and effectiveness.
Submit your summary and associated Microsoft Excel files to the instructor. Note that the Microsoft Excel files should include all Solver settings, functions, and formulas used to generate the problem solutions.
While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.