Question 1

One reason for using simulation rather than an analytical model in an inventory problem is that the simulation is able to handle probabilistic demand and lead times.

Accepted Answer

A) True 
 B)False

Question 2

Explain how Monte Carlo simulation uses random numbers.

Accepted Answer

First, a cumulative probability distribu

Question 3

Complete the following table in preparation for a Monte Carlo simulation.
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Demand } & \text { Probability } & \begin{array} { c } 
\text { Cumulative } \
\text { Probability }
\end{array} & \begin{array} { c } 
\text { Interval of Random } \
\text { Numbers }
\end{array} \
\hline 1 & & & 01 - 20 \
\hline 2 & & & 21 - 25 \
\hline 3 & & & 26 - 50 \
\hline 4 & & & 51 - 80 \
\hline 5 & & & 81 - 00 \
\hline
\end{array}$$

Accepted Answer

The answer of Complete the following table in preparation for...

Question 4

A waiting-line problem that cannot be modelled by standard distributions has been simulated. The table below shows the result of a Monte Carlo simulation. (Assume that the simulation began at 8:00 a.m. and there is only one server.
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Customer Number } & \text { Arrival Time } & \text { Service Time } & \text { Service Ends } \
\hline 1 & 8 : 06 & 2 & 8 : 08 \
\hline 2 & 8 : 07 & 10 & 8 : 18 \
\hline 3 & 8 : 12 & 10 & 8 : 28 \
\hline 4 & 8 : 24 & 11 & 8 : 39 \
\hline 5 & 8 : 30 & 5 & 8 : 44 \
\hline
\end{array}$$ a. What is the average waiting time in line?
b. What is the average time in the system?

Accepted Answer

(a) Waiting time is 0 + 1 + 6

Question 5

Would you simulate a problem for which there is an exact mathematical model already?

Accepted Answer

In terms of getting the problem solved,

Question 6

Provide a small example illustrating how random numbers are used in Monte Carlo simulation.

Accepted Answer

For example, demand can be 0, 40% of the

Question 7

Simulation provides optimal solutions to problems.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true regarding simulation?

Accepted Answer

A)  If an analytical model can't solve a problem, neither can a simulation. 
B)  Simulation can only be done by computer. 
C)  Monte Carlo simulation requires the use of random numbers. 
D)  Simulation models are inexpensive. 
E)  It cannot handle large and complex problems. 
A)  If an analytical model can't solve a problem, neither can a simulation. 
B)  Simulation can only be done by computer. 
C)  Monte Carlo simulation requires the use of random numbers. 
D)  Simulation models are inexpensive. 
E)  It cannot handle large and complex problems.

Question 9

Which of the following is not a step in running a Monte Carlo simulation?

Accepted Answer

A)  setting up a probability distribution for important variables 
B)  building a cumulative probability distribution for each variable 
C)  establishing an interval of random numbers for each variable 
D)  generating random numbers 
E)  All of the above are steps in running a Monte Carlo simulation. 
A)  setting up a probability distribution for important variables 
B)  building a cumulative probability distribution for each variable 
C)  establishing an interval of random numbers for each variable 
D)  generating random numbers 
E)  All of the above are steps in running a Monte Carlo simulation.

Question 10

Complete the following table in preparation for a Monte Carlo simulation. The expected demand is 8.
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Demand } & \text { Probability } & \begin{array} { c } 
\text { Cumulative } \
\text { Probability }
\end{array} & \begin{array} { c } 
\text { Interval of Random } \
\text { Numbers }
\end{array} \
\hline 0 & & .2 & \
\hline 2 & & & 21 - 40 \
\hline 3 & & 4 & \
\hline 4 & & & \
\hline & & & 85 - 100 \
\hline
\end{array}$$

Accepted Answer

@#IMG-DLM& Students should have only moderate diff

Question 11

One of the disadvantages of simulation is that it

Accepted Answer

A)  does not allow for very complex problem solutions. 
B)  produces solutions and inferences that are not usually transferable to other problems. 
C)  cannot study the interactive effects of individual components or variables. 
D)  is very limited in the type of probability distribution that can be used. 
E)  interferes with the production systems while the program is being run. 
A)  does not allow for very complex problem solutions. 
B)  produces solutions and inferences that are not usually transferable to other problems. 
C)  cannot study the interactive effects of individual components or variables. 
D)  is very limited in the type of probability distribution that can be used. 
E)  interferes with the production systems while the program is being run.

Question 12

Identify five applications of simulation.

Accepted Answer

The five applications of simulation can

Question 13

The seven steps in the use of simulation include all but which of the following?

Accepted Answer

A)  define the problem 
B)  construct a mathematical model 
C)  introduce important variables associated with the problem 
D)  find the optimal solution 
E)  run the experiment 
A)  define the problem 
B)  construct a mathematical model 
C)  introduce important variables associated with the problem 
D)  find the optimal solution 
E)  run the experiment

Question 14

The number of tires sold at a car garage varies randomly between 0 and 4 each hour. What set of random numbers (on the 1-100 scale would tire sales of 2 be assigned?

Accepted Answer

A)  01 through 20 
B)  21 through 40 
C)  41 through 60 
D)  61 through 80 
E)  81 through 100 
A)  01 through 20 
B)  21 through 40 
C)  41 through 60 
D)  61 through 80 
E)  81 through 100

Question 15

Which of the following statements regarding simulation is true?

Accepted Answer

A)  Simulation can be physical or mathematical. 
B)  Simulation has numerous areas of application in operations. 
C)  Simulation attempts to duplicate a real system. 
D)  Monte Carlo simulation is a chance-based mathematical model of a real system. 
E)  All of these are true. 
A)  Simulation can be physical or mathematical. 
B)  Simulation has numerous areas of application in operations. 
C)  Simulation attempts to duplicate a real system. 
D)  Monte Carlo simulation is a chance-based mathematical model of a real system. 
E)  All of these are true.

Question 16

Virtually all large-scale simulations take place on computers, but small simulations can be conducted by hand.

Accepted Answer

A) True 
 B)False

Question 17

A distribution of service times at a waiting line indicates that service takes 6 minutes 30% of the time, 7 minutes 40% of the time, 8 minutes 20% of the time, and 9 minutes 10% of the time. In preparing this distribution for Monte Carlo analysis, the service time 8 minutes would be represented by the random number range

Accepted Answer

A)  20 through 40. 
B)  21 through 40. 
C)  70 through 90. 
D)  71 through 90. 
E)  40 through 70. 
A)  20 through 40. 
B)  21 through 40. 
C)  70 through 90. 
D)  71 through 90. 
E)  40 through 70.

Question 18

One of the advantages of simulation is that

Accepted Answer

A)  it is much less expensive than a mathematical solution. 
B)  it always generates a more accurate solution than a mathematical solution. 
C)  the policy changes may be tried out 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. 
A)  it is much less expensive than a mathematical solution. 
B)  it always generates a more accurate solution than a mathematical solution. 
C)  the policy changes may be tried out 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.

Question 19

The effects of OM policies over many months or years can be obtained by computer simulation in a short time. This phenomenon is referred to as ________.

Accepted Answer

The answer of The effects of OM policies over many...

Question 20

"Time compression" and the ability to pose "what-if" questions are elements of

Accepted Answer

A)  setting up a probability distribution for important variables. 
B)  the disadvantages of simulation. 
C)  physical simulations but not mathematical simulations. 
D)  the advantages of simulation. 
E)  the broad threefold idea of simulation. 
A)  setting up a probability distribution for important variables. 
B)  the disadvantages of simulation. 
C)  physical simulations but not mathematical simulations. 
D)  the advantages of simulation. 
E)  the broad threefold idea of simulation.

Exam 23: Simulation

One reason for using simulation rather than an analytical model in an inventory problem is that the simulation is able to handle probabilistic demand and lead times.

Explain how Monte Carlo simulation uses random numbers.

Complete the following table in preparation for a Monte Carlo simulation. Demand Probability Cumulative Probability Interval of Random Numbers 1 01-20 2 21-25 3 26-50 4 51-80 5 81-00

Would you simulate a problem for which there is an exact mathematical model already?

Provide a small example illustrating how random numbers are used in Monte Carlo simulation.

Simulation provides optimal solutions to problems.

Which of the following is true regarding simulation?

Which of the following is not a step in running a Monte Carlo simulation?

Complete the following table in preparation for a Monte Carlo simulation. The expected demand is 8. Demand Probability Cumulative Probability Interval of Random Numbers 0 .2 2 21-40 3 4 4 85-100

One of the disadvantages of simulation is that it

Identify five applications of simulation.

The seven steps in the use of simulation include all but which of the following?

The number of tires sold at a car garage varies randomly between 0 and 4 each hour. What set of random numbers (on the 1-100 scale would tire sales of 2 be assigned?

Which of the following statements regarding simulation is true?

Virtually all large-scale simulations take place on computers, but small simulations can be conducted by hand.

One of the advantages of simulation is that

The effects of OM policies over many months or years can be obtained by computer simulation in a short time. This phenomenon is referred to as ________.

"Time compression" and the ability to pose "what-if" questions are elements of

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