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Monte Carlo Simulation - Optimal Production Level

  • Created a program simulation written in Python that will generate a recommendation given a set of parameters
  • Parameters: unit price, retail price, cost of disposing, and number of units to manufacture

Function Objectives

  • Specify if its normal (Gaussian) or uniform distribution
  • Randomly generate demand instances
  • Compute the profit for a given demand and store it in alist
  • Compute mean and standard deviation of the profit
  • Identify the optimal level of production

Screenshot of Graph Generated

Simulation Figure Simulation Figure

Libraries Used