An Auto Parts Store Wants to Simulate Its Inventory System

question 51

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 for generating a random shipping time based on the Data spreadsheet distribution for shipping time?

• A)=PsiCumul($B$6:$C$8)
• B)=PsiCustom($B$6:$B$8, $C$8:$C$8)
• C)=PsiGeneral(Data!$B$6, probability $C$8)
• D)=PsiDiscrete($B$6:$B$8, $C$8:$C$8)

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Definitions:

Visual Basic Window

An application window in the Visual Basic development environment where code is written, tested, and debugged.

Report Design View

A mode in database and report generation software that allows users to create and modify the layout and structure of reports before printing or sharing.

Macro Design View

A feature in database and spreadsheet software that allows users to create and modify macros in a more visual and structured layout.

Visual Basic Editor

An integrated development environment (IDE) from Microsoft used for editing Visual Basic code and developing macros for Excel and other Office applications.