1) Number of days needed to repair the copier; Using the VLOOKUP function to the constructed probability table (the

probabilities having been supplied), with the Excel generated random number r2 as its pointer, provides the expected repair time in days in column F. This generates a number between 1 and 4 days.

2) Interval between successive breakdowns; Using the function 6*SQRT(r1), with r1 being randomly generated by Excel, yields the time between repairs in weeks in column C. This generates a number between 1 and 6 weeks.

3) A suitable method for simulating lost revenue for each day out of service; Taking the aforementioned duration it is out of service (col F), with a maximum of four days, I elected to find the number of copies expected for each day with the function (6*r3+2)81000. R3 being randomly generated by Excel, the function yields a result between 2000 and 6000 copies per day. The lost revenue was computed at 10 cents a page. The demand columns ( H, K, N, and Q) look at col F and only determines demand if the down-time duration requires it.

4) Put this together to simulate lost revenue for a year and answer the case study question is it smart business to buy a backup copier? The sheet shows at the 13th breakdown, which occurs at ~ 55 weeks, the lost revenue total was $11,461.50 (highlighted in yellow). The is below the agreed upon threshold of $12,000, so with this calculation an backup copier is not warranted.