Exam 22: Simulation

The Rose Warehouse buys roses each week from Panama.A toll?free long distance call is made on Saturday night, and early Monday morning roses arrive at the airport in a box refrigerated with dry ice.The roses cost $8 a dozen and are sold on a cash-and-carry basis for $28 a dozen.Roses left over at the end of the week are put in a trash collector in an alley behind the store.Past sales (rounded to the nearest ten dozen) are as follows: The owner of the Rose Warehouse wants to compare two ordering rules for ordering roses: (1) order last week's demand plus 10 dozen extra (as safety stock), (2) order 130 dozen every week.He wants to run an eight-week simulation to compare the average weekly profit for the two rules.Last week's demand was for 110 dozen.He generated the following random numbers for weeks 1-8, respectively: 63, 13, 67, 50, 71, 25, 44, and 00. a.What is the random number range corresponding to 130 dozen roses demanded? b.Using ordering rule 1, what is the profit for week 3? c.Using ordering rule 2, what is the profit for week 6? d.What is the average profit over all eight weeks for ordering rule 1?

Define simulation and give some operations management examples.

All of the following are verification techniques except

____ trace the detailed logic or actions that occur in the system in a step-by-step fashion over time.

Spreadsheets are extremely strong in their ability to conduct dynamic simulation analysis.

All of the following are disadvantages of simulation except

If variability of demand were the only source of uncertainty, the order quantity and reorder-point decision could be based on a single-period inventory model.

Face validity involves asking people familiar with the real system to evaluate the assumptions and logic of a model.

Explain the major differences between a fixed-time and a next-event simulation model.Include advantages and disadvantages of each.

There is no single test to prove that a model is 100% valid.

Simulation language ProcessModel contains all of the following except

With a fixed-time-increment simulation model, detailed information is lost.

A computer implementation free from logical errors and bugs refers to

It doesn't make sense to use simulation for waiting-line problems since queuing models give optimal solutions.

A lumber company sells 8-foot 2x4's to construction companies in three states.They have historical sales demand (in thousands) for the past 26 weeks, as shown below: They are interested in determining the average number of sales per category for the next five weeks using simulation.They generated the following random numbers for weeks 1-5 respectively: 63, 13, 67, 50, and 71. a.Based on a scale of 0-99, what random number range should be allocated to sales category of 11-20? b.What is the average sales corresponding to week 2? c.What is the average sales over all five weeks?

'Face validity' means the programmers agree to the model's logic.

Which of the following is not correct regarding next-event simulation models?

A busy municipal golf driving range prepares 300 hotdogs daily.For a variety of reasons, the daily demand for hotdogs varies as follows: a.If the hotdogs sell for $1.50 each and cost $0.80 each, determine the range's profit or loss on hotdogs for day three using the following random numbers: 00, 59, 02, 97, 69, 98, 93, 49, 51, 92. b.If the hotdogs sell for $1.50 each and cost $0.80 each, determine the range's profit or loss on hotdogs for day eight using the following random numbers: 00, 59, 02, 97, 69, 98, 93, 49, 51, 92. c.If the hotdogs sell for $1.50 each and cost $0.80 each, determine the average daily demand for hotdogs using the following random numbers: 00, 59, 02, 97, 69, 98, 93, 49, 51, 92.

In general, as the number of probabilistic components of a system increases, the more likely it is that simulation will be the best analysis approach.

Which is correct regarding a simulation model for inventory management?