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:

Educational Qualifications

Certificates, degrees, or diplomas obtained from educational institutions which demonstrate a person's level of education or expertise in specific areas.

Unemployment Rates

The proportion of the workforce that is unemployed and actively looking for work.

Charter of Rights and Freedoms

A fundamental document in Canada that guarantees certain political and civil rights to Canadian citizens.

Collective Bargaining

The negotiation process between employers and a group of employees aimed at reaching agreements to regulate working conditions, wages, and other aspects of workers' compensation and rights.