Exhibit 12.3 The Following Questions Use the Information Below

question 51

Multiple Choice

Exhibit 12.3
The following questions use the information below.
An auto parts store wants to simulate its inventory system for engine oil. The company has collected data on the shipping time for oil and the daily demand for cases of oil. A case of oil generates a $10 profit. Customers can buy oil at any auto parts store so there are no backorders (the company loses the sale and profit) . The company orders 30 cases whenever the inventory position falls below the reorder point of 15 cases. Orders are placed at the beginning of the day and delivered at the beginning of the day so the oil is available on the arrival day. An average service level of 99% is desired. The following spreadsheets have been developed for this problem. The company has simulated 2 weeks of operation for their inventory system. The current level of on-hand inventory is 25 units and no orders are pending.
-Using the information in Exhibit 12.3, what Analytic Solver Platform function should be used in cell I8 to determine the lead time for an order?

• A) =PsiDiscrete($B$6:$B$8, $C$6:$C$8)
• B) =PsiPoisson(Data!$B$6:$B$8,$Data!$C$6:$C$8)
• C) =PsiBinomial(Data!$B$6:$B$8,$Data!$C$6:$C$8)
• D) =PsiNormal($B$6:$C$8)

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Definitions:

Poststructuralism

An intellectual movement critiquing the ability of our language and structures to fully represent or capture reality, emphasizing the instability of meaning.

Postmodernism

is a broad movement that developed in the mid- to late-20th century across philosophy, the arts, architecture, and criticism, marking a departure from modernism with its skepticism towards grand narratives and emphasis on relativism and individuality.

Modern Conceptions

Concepts or ideas that are current and widely accepted in the present time.

Hyperspace

A concept from mathematics and science fiction referring to a space with more dimensions than those of the observable universe.