Calambra Olive Oil (B)
The B case describes Frank Lockfeld building a spreadsheet model that captures the essence of the discussion in the A case. Since this is a difficult model to build, we recommend using the B case when teaching the Calambra Olive Oil sequence early in a module on Monte Carlo simulation. The model, which is also available electronically and should be distributed with the B case, is set up to evaluate scenarios and compare (in multiple columns) the affect of different order quantities for the specified scenario. To turn the model into a simulation model, all the students need do is replace the scenario drivers with probability distributions. Note: the C case may be used in place of--NOT IN ADDITION TO--the B case. Rather than evaluate different order quantities in columns, the C case uses data tables.