Special-Purpose Simulation Software Is Specially Built to Run Specific Applications

question 61

True/False

Special-purpose simulation software is specially built to run specific applications and may have provisions in manufacturing models to allow for specifying the number of workcenters, their descriptions, arrival rates, and even batch sizes.

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Definitions:

Marginal Benefit

The additional satisfaction or value obtained from acquiring one more unit of a product or service.

Expected Total Return

The sum of all anticipated earnings from an investment, including capital gains, interest, and dividends, over a specified period, reflecting its potential profitability.

Optimal R&D

The most efficient level of investment in research and development activities where marginal cost equals marginal benefit.

Expected Rate Of Return

The increase in profit a firm anticipates it will obtain by purchasing capital or engaging in research and development (R&D); expressed as a percentage of the total cost of the investment (or R&D) activity.