Which of the Following Represents the Primary Reason Simulation Cannot

question 83

Multiple Choice

Which of the following represents the primary reason simulation cannot be used for the classic EOQ model?

• A)too many parameters involved
• B)too many decision variables
• C)EOQ models are probabilistic.
• D)EOQ models are deterministic.

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Definitions:

Merchandising Firm

A business that purchases goods and resells them at a profit without changing their basic form.

Manufacturing Firm

A business engaged in the industrial production of goods from raw materials through the use of labor and machinery.

Conversion Costs

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

Factory Overhead

Costs incurred during the manufacturing process that are not directly applicable to individual products, such as maintenance and utilities.