Exam 13: Simulation Modeling

Simulation models are limited to using standard probability distributions such as Poisson, exponential, normal, etc.

Simulation of a business or process is generally performed by building a mathematical model to represent the process or system.

Which of the following variables are probabilistic in an inventory model that requires simulation?

Table 13-4 A pawn shop in Arlington, Texas, has a drive-through window to better serve customers.The following tables provide information about the time between arrivals and the service times required at the window on a particularly busy day of the week.All times are in minutes. The first random number generated for arrivals is used to tell when the first customer arrives after opening. -According to Table 13-4, the time between successive arrivals is 1, 2, 3, or 4 minutes.The store opens at 8:00 a.m., and random numbers are used to generate arrivals and service times.The first random number to generate an arrival is 39, while the first service time is generated by the random number 94.What time would the first customer finish transacting business?

The Monte Carlo simulation is used with variables that are probabilistic.

Simulation models may contain both deterministic and probabilistic variables.

When establishing a probability distribution based on historical outcomes, the relative frequency for each possible outcome of a variable is found by dividing the frequency of each outcome by the total number of observations.

Which of the following is not an advantage of simulation?

Table 13-7 A professor dutifully holds six office hours per week as dictated by an archaic policy.Demand for office hours varies wildly as reflected in this historical data. The duration of time to answer questions varies independently from the actual demand.Question duration is reflected in this table. Entries in the student demand and question duration tables that reflect a range in demand, i.e., 3-9 students per six hours or 4-9 minutes should be treated as collapsed entries in the table.Thus, a question duration of 4 minutes has a 0.05 probability, a question duration of 5 minutes also has a 0.05 probability, and so on up through 9 minutes and a 0.05 probability. This table contains random numbers for the number of students and duration of question for a 16-week period. Use the question duration figure as the time required to answer questions for each student that week, so if three students arrive in week seven and the average duration is ten minutes, the total time spent answering questions that week is thirty minutes. -Use the information in Table 13-7 to determine the range of random numbers that corresponds to 10 students showing up for office hours.

The advantage of simulation over queuing or waiting line models is that simulation allows us to relax our assumptions regarding arrival and service distributions.

There are three categories of simulation models: Monte Carlo, operational gaming, and systems simulation.

A major advantage of using simulation techniques is to be able to study the interactive effect of individual components/variables.

The Monte Carlo simulation was developed by

The demand for refrigerators at an appliance store adheres to the following probability distribution: The store orders 4 refrigerators per day to have in stock to meet demand.They are trying to maintain low inventory levels.The holding cost is $5/unit/day.The ordering cost is $20 per order.The lost sale cost is $10/unit.A simulation is to be developed to estimate the average daily inventory cost over 5 days.The table below shows the random numbers to be used for refrigerator demand and lead time on orders: Assuming that beginning inventory is equal to 5 with no prior orders in transit, what is the overall average daily cost of inventory for the 5 days?

If, in a simple queuing or waiting line problem, we wish to know the maximum likely waiting time, or the maximum likely length of the line, we must use a simulation model.

Customer arrivals adhere to the following probability distribution: Create an appropriate table of interval of random numbers.

Table 13-5 -According to Table 13-5, which presents a summary of the Monte Carlo output from a simulation of 200 runs, there are 5 possible values for the variable of concern.If random numbers between 01 and 100 are used to generate values, then a random draw of 72 would produce a variable value of

A flow diagram is helpful in the logical coding procedures for programming a simulation process.

Which of the following is not considered one of the 5 steps of Monte Carlo Simulation?

Simulation is very flexible.Thus, its solutions and inferences are usually transferable to other problems.