With Regard to a Simulation Model for Inventory Management, All

question 28

Multiple Choice

With regard to a simulation model for inventory management, all of the following are correct EXCEPT:

• A) it results in an optimal solution with a large simulation.
• B) many days of simulation run are needed to obtain meaningful results.
• C) lead time can vary.
• D) it assumes that a specific reorder point and order quantity have been selected.

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Definitions:

Average Scores

The mean value obtained by dividing the sum of all scores by the number of scores.

Critical Value

A threshold value used in hypothesis testing to determine whether to reject the null hypothesis, based on the statistical model used.

Level of Significance

A threshold within statistical hypothesis testing that determines whether to accept or reject the null hypothesis, paralleling the concept of a significance level but emphasizing its critical value in analysis.

Means

The average of a set of values, calculated by dividing the sum of the values by the number of values.