One of the Advantages of Simulation Is That

question 43

Multiple Choice

One of the advantages of simulation is that:

• A) managers must generate all of the conditions and constraints for solutions that they want to examine.
• B) it always generates a more accurate solution than a mathematical solution would.
• C) the policy changes may be tried without disturbing the real-life system.
• D) model development is less time consuming than for mathematical models.
• E) model solutions are transferable to a wide variety of problems.

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Definitions:

Internal Failure Cost

Expenses incurred when a product fails to reach quality standards before it is delivered to the customer, including scrap and rework costs.

Quality Cost Report

A financial report detailing the costs associated with ensuring products meet quality standards, including prevention, appraisal, and failure costs.

Rework Labor

The effort and cost associated with correcting defective goods or services after they have been produced.

External Failure Cost

Costs incurred when a product or service fails to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.