Simulation Harvard Case Solution & Analysis

Simulation Case Study Solution

In addition to this, the transportation by airship provides the profits among all three available options of around -8,425 United States dollars with the standard deviation of around 211,517 United States dollars which shows that the profits might be vary with the changes in profits of around 211,517 United States dollars. Apart from that, the minimum and maximum profits for the company by airship transportation will be – 1,842,000 United States dollars and 46,100 United States dollars respectively.

So, it has been concluded that the transportation by water provides the maximum profits among all three available options. That is why, the transportation mode must be by water to maximize profits.

Airship Costs Equal to Air Freight Cost:

The airship freight rate must be reduce by 3,100 United States dollars to reach the level of 4,800 United States dollars from 7,900 United States dollars. This level of airship freight rate will be equal to the air freight total costs.

Additional Factors:

The additional factors should be considered in the simulation process includes the

• Damages during the transportation
• Late deliveries
• Order cancelation
• Price changes
• Customer requirements
• Taste preferences
• Export rates
• Country import duties
• Changes in tariffs

Exhibit 1: By Air

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