A Manager Is Simulating the Number of Times a Machine

question 76

Multiple Choice

A manager is simulating the number of times a machine operator stops a machine to make adjustments. After careful study the manager found that the number of stops ranged from one to five per cycle and that each number of stops was equally likely. Using the random numbers 0.1835 and 0.3094 (in that order) , the next two simulated cycles would respectively have stops for adjustment of:

• A) 2 and 2.
• B) 1 and 2.
• C) 2 and 1.
• D) 1 and 1.
• E) 2 and 3.

---

Definitions:

Inventories

Stocks of goods and materials that a company holds for the purpose of resale or production.

Inventory

The total quantity of goods and materials held in stock by a business, warehouse, or retail location.

Overstocking

The practice of holding more inventory than is necessary, often leading to excess stock that is difficult to sell.

Understocking

The condition where the inventory levels are too low, risking stockouts, lost sales, and dissatisfied customers.