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NEW QUESTION: 1
A company experiences both variable usage rates and variable lead times for its inventory items. The probability distributions for both usage and lead times are known. A technique the company could use for determining the optimal safety stock levels for an inventory item is:
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B. Decision tree analysis.
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D. Monte Carlo simulation.
Answer: D
Explanation:
Simulation is a technique for experimenting with mathematical models using a computer. Monte Carlo simulation is a technique to generate the individual values for a random variable. A random number generator is used to produce numbers with a uniform probability distribution. The second step of the Monte Carlo process then transforms the random numbers into values consistent with the desired distribution. The performance of a model under conditions of uncertainty may be investigated by randomly selecting values for each of the variables in the model based on the probability distribution of each variable and then calculating the value of the solution. Advantages of Monte Carlo simulation are that time can be compressed, alternative policies can be considered, and complex systems can be analyzed.
NEW QUESTION: 2
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NEW QUESTION: 3
You create the PivotChart shown in the exhibit. (Click the Exhibit button.) Exhibit:
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Answer:
Explanation:
Explanation
Box 1: Product: Axis
Box 2: SalesAmount: Values
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