Simulation Is Used for Several Reasons, Including

question 2

Multiple Choice

Simulation is used for several reasons, including

• A) model development is a fast process
• B) it is inexpensive
• C) the models are usually simple
• D) it can handle large and complex real-world problems
• E) it always generates optimal solutions

---

Definitions:

Periodic Review Policies

Inventory management approaches where stock levels are reviewed and possibly adjusted at regular intervals, regardless of demand patterns.

Review Interval

The scheduled time period between assessments or evaluations of a system, process, or set of data to ensure accuracy and efficiency.

Standard Deviation

A statistic that measures the dispersion or spread of a set of data points relative to its mean, indicating how much variation exists from the average.

Demand Aggregation

Combining demand from different sources to gain efficiencies in supply chain management, such as bulk purchasing or centralized distribution.