Exam 26: Simulation

Julie's Diamond Boutique is very concerned with its order policies related to one-carat diamond solitaires.Their current policy is to order 10 diamonds whenever their inventory reaches 6 diamonds (unless there is already an ordered delivery due).Currently there are 8 diamonds on hand.Orders are placed at the end of the month and take one month to arrive .The following distribution of monthly sales has been developed using historical sales.If Julie's does not have a diamond on hand,it will result in a lost sale.Use the following random numbers to determine the number of lost sales of one-carat solitaires at Julie's over 12 months. Random numbers for sales: 10,24,03,32,23,59,95,34,34,51,08,48

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. )Why do you think this problem does not fit the standard distribution for waiting lines? Explain briefly how a Monte Carlo simulation might work where analytical models cannot.

Suppose the following random numbers (1,34,22,78,56,98,00,82)were selected during a Monte Carlo simulation that was based on the chart below.What was the average demand per period for the simulation? What is the expected demand?

One of the advantages of simulation is that

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

From a portion of a probability distribution,you read that P(demand = 0)is 0.05,P(demand = 1)is 0.10,and P(demand = 2)is 0.20.The two-digit random number intervals for this distribution beginning with 01 are

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

State the three-fold idea behind simulation.

One of the advantages of simulation is that

Which of the following is a necessity for common EOQ methodology but not simulations?

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

From a portion of a probability distribution,you read that P(demand = 0)is 0.05 and P(demand = 1)is 0.10.The cumulative probability for demand 1 would be

Which of the following is true regarding simulation?

Which of the following statements regarding simulation is true?

Define simulation.

The Las Vegas method is a simulation technique that uses random elements when chance exists in their behaviour.

From a portion of a probability distribution,you read that P(demand = 1)is 0.05,P(demand = 2)is 0.15,and P(demand = 3)is .20.The cumulative probability for demand 3 would be

Like mathematical and analytical models,simulation is restricted to using the standard probability distributions.

A reason for the use of simulation in queuing is that the four standard queuing models do not allow for unusual arrival and service distributions.

A distribution of service times at a waiting line indicates that service takes 12 minutes 30% of the time and 14 minutes 70% of the time.Prepare the probability distribution,the cumulative probability distribution,and the random number intervals for this problem.