Exhibit 12.3 The Following Questions Use the Information Below

question 67

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.
-A variable whose value cannot be predicted or set with certainty is a

• A) discrete variable
• B) random variable
• C) realistic variable
• D) simulation variable Instructions: Answer the following questions using the Analytic Solver Platform Excel add-in.

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Definitions:

Domestic Accomplishments

Achievements or tasks completed within the home or pertaining to internal affairs of a country.

Failures

Situations or instances where expected or desired outcomes are not achieved, leading to a lack of success or achievement.

2003 War

Often refers to the Iraq War, a conflict that began in 2003 with the invasion of Iraq by a United States-led coalition.

Iraq

A country located in Western Asia, known for its rich history and as a center of civilization in ancient times.