Setting Up a Probability Distribution, Building a Cumulative Probability Distribution

question 53

Multiple Choice

Setting up a probability distribution, building a cumulative probability distribution, and generating random numbers are:

• A) necessary when the underlying probability distribution is normal.
• B) three of the five steps in Monte Carlo simulation.
• C) elements of physical simulation but not mathematical simulation.
• D) the elements of the threefold idea behind simulation.
• E) advantages of simulation.

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Definitions:

Postponement

A strategy used in supply chain management to delay product customization until customer orders are received.

Replenishment Cycle

The process of restocking products or materials in a supply chain, from ordering to receipt and back to order again.

Lead Time

Lead time is the duration between the initiation and completion of a process, often used in reference to the time taken from ordering to receiving goods.

ROP

Refers to Reorder Point, a inventory management technique indicating the minimum level before a new order must be placed.