An Auto Parts Store Wants to Simulate Its Inventory System

question 11

Multiple Choice

An auto parts store wants to simulate its inventory system for engine oil. The company has collected data on the shipping time for oil and the daily demand for cases of oil. A case of oil generates a $10 profit. Customers can buy oil at any auto parts store so there are no backorders (the company loses the sale and profit) . The company orders 30 cases whenever the inventory position falls below the reorder point of 15 cases. Orders are placed at the beginning of the day and delivered at the beginning of the day so the oil is available on the arrival day. An average service level of 99% is desired. The following spreadsheets have been developed for this problem. The company has simulated 2 weeks of operation for their inventory system. The current level of on-hand inventory is 25 units and no orders are pending.
-Using the information in Exhibit 12.3, what Risk Solver Platform (RSP) function should be used in cell D8 and copied to cells D9:D21 of the MODEL sheet to compute daily demand?

• A)=PsiDiscrete($E$6:$E$13, $F$6:$F$13)
• B)=PsiHypergeo($E$6:$F138)
• C)=PsiBinomial($E$6, $F$13)
• D)=PsiCustom(Data!$E$6, $F$13)

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Definitions:

Postsynaptic Neuron

The neuron that receives a signal (neurotransmitter) from another neuron at a synapse.

Action Potentials

Rapid electrical impulses that travel along the neuron's membrane, enabling communication within the nervous system.

GABA

Gamma-Aminobutyric Acid, a neurotransmitter in the brain that inhibits nerve transmission, playing a role in regulating neuronal excitability.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and coordinating bodily functions.