Quantative Methods for Business. Managerial and scientific report Best Bike Ltd. Simulation with Excel Cristal Ball.

Table of contents. Managerial Report 1.Introduction BestBikes Ltd. designs, produces and markets a wide variety of bicycles. Currently it is evaluating two new product proposals that have reached the final planning stage, namely a road- and mountain bike. BestBikes Ltd. can only produce one of the two proposed bikes. BestBikes wants to select the bike with the highest return on investment (ROI) and wants to limit the amount of risk. The calculation of the ROI …showed first 75 words of 2394 total…

…showed last 75 words of 2394 total…Bike frequency chart This graph is accompanied by the following statistics: Table 8. Statistics Mountain Bike 6.3 Expected ROI After evaluating the simulations it becomes clear that, when taking the variability of the various elements into account, an accurate estimation of the ROI for both bikes differs from the one initially calculated by the management of Best Bikes. The road bike will provide a ROI of approximately 17,67% and the mountain bike will provide a ROI of approximately 21,23%.