Suppose You Run a Simulation Model Several Times with Different

question 9

Multiple Choice

Suppose you run a simulation model several times with different order quantities.What can we infer about the quantity that maximizes the output,the company's profit?

• A) This quantity is the optimal order quantity.
• B) This quantity might be the optimal order quantity,but we also need to consider the company's attitude toward risk.
• C) This is not necessarily the optimal order quantity,because it may have produced the largest profit by luck.
• D) We can't infer anything.

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Definitions:

Group Think

A behavioral pattern seen in a collective where the need for unity or agreement leads to unwise or ineffective choices due to suppressed dissent or critical thought.

Cohesive

The quality of forming a united whole, often used to describe the unity within a group or team.

Conformity

The act of aligning one's behaviors, beliefs, or standards to match those of a group or societal norms.

Close Minded

Having or showing a rigid opinion or standpoint, not open to new ideas or arguments.