A Distribution of Lead Times in an Inventory Problem Indicates

question 5

Multiple Choice

A distribution of lead times in an inventory problem indicates that lead time was 1 day 20 percent of the time,2 days 30 percent of the time,3 days 30 percent of the time,and 4 days 20 percent of the time.This distribution has been prepared for Monte Carlo analysis.The first four random numbers drawn are 06,63,57,and 02.What is the average lead time of this simulation?

• A)1.75 days
• B)2 days
• C)3 days
• D)3.5 days
• E)8 days

---

Definitions:

Oil

A natural fossil fuel used primarily for energy production and as a raw material in manufacturing.

Banking

The business activity of accepting and safeguarding money owned by individuals and entities, and then lending out this money to earn a profit.

Interdependence

Interdependence in economics describes a situation where entities such as individuals, businesses, or countries depend on each other to some extent for resources, goods, services, or finances.

Oligopolistic Firms

Businesses operating in a market structure where a few companies have the majority of market share and can often influence prices and market conditions.