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:

Sickle Cell Anemia

Sickle Cell Anemia is a genetic blood disorder characterized by the production of abnormal, sickle-shaped red blood cells, leading to chronic pain and complications.

Chromosome 11

One of the 23 pairs of chromosomes in humans, containing genes important for immune function, cell cycle regulation, and various metabolic processes.

Mutation

Change in the number or kinds of nucleotides in the DNA of a gene.

Leukocytes

White blood cells that are part of the immune system, defending the body against infection and disease.