For the Outsourcing Decision Model , suppose that the demand volume is lognormal

For the Outsourcing Decision Model , suppose that the demand volume is lognormally distributed with a mean of 1,500 and a standard deviation of 500. What is the distribution of the cost differences between manufacturing in-house and purchasing? What decision would you recommend? Define both the cost difference and decision as forecast cells. Because Crystal Ball forecast cells must be numeric, replace the formula in cell B20 with =IF(B18 6 = 0, 1, 0); that is, “1” represents manufacturing and “0” represents outsourcing.

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