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A Disadvantage of Simulation Is That Results for a Given

question 42

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A disadvantage of simulation is that results for a given run only apply to that particular collection of processes under that particular set of assumptions.


Definitions:

Activity At Capacity

The level of operations where a company or a production process is utilizing all available resources without any waste.

Fixed Manufacturing Overhead

Indirect manufacturing costs that do not change with the level of production, such as salaries of managers and depreciation of factory equipment.

Estimated Labor-Hours

A projection of the total hours of work required to complete a task or project.

Variable Manufacturing Overhead

The indirect, variable costs associated with manufacturing a product, which change in proportion to production volume.

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