Question 1

One effective use of simulation is to study problems for which the mathematical models of operations management are not realistic enough.

Accepted Answer

A) True 
 B)False

Question 2

Explain how Monte Carlo simulation uses random numbers.

Accepted Answer

First,a cumulative probability distribut

Question 3

A(n)________ is a series of digits that have been selected by a totally random process.

Accepted Answer

The answer of A(n)________ is a series of digits that...

Question 4

One of the advantages of simulation is that:

Accepted Answer

A) managers must generate all of the conditions and constraints for solutions that they want to examine. 
B) it always generates a more accurate solution than a mathematical solution would. 
C) the policy changes may be tried 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) managers must generate all of the conditions and constraints for solutions that they want to examine. 
B) it always generates a more accurate solution than a mathematical solution would. 
C) the policy changes may be tried 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 5

One of the disadvantages of simulation is that it:

Accepted Answer

A) does not allow for very complex problem solutions. 
B) is not very flexible. 
C) may be very time-consuming to develop. 
D) is very limited in the type of probability distributions that can be used. 
E) interferes with the production system while the program is being run. 
A) does not allow for very complex problem solutions. 
B) is not very flexible. 
C) may be very time-consuming to develop. 
D) is very limited in the type of probability distributions that can be used. 
E) interferes with the production system while the program is being run.

Question 6

One of the disadvantages of simulation is that it:

Accepted Answer

A) does not allow for very complex problem solutions. 
B) is not very flexible. 
C) is a repetitive approach that may produce different solutions in different runs. 
D) is very limited in the type of probability distributions 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) is not very flexible. 
C) is a repetitive approach that may produce different solutions in different runs. 
D) is very limited in the type of probability distributions that can be used. 
E) interferes with the production systems while the program is being run.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Identify,in order,the five steps required to implement the Monte Carlo simulation technique.

Accepted Answer

(1)Setting up a probability distribution

Question 9

Historical records on a certain product indicate the following behavior for demand.The data represent the 288 days that the business was open during 2000.Convert these data into random number intervals.(Round each probability used to 2 decimal places,e.g. ,0.36)

Accepted Answer

The answer of Historical records on a certain product indicate...

Question 10

The ________ method is a simulation technique that uses random elements when chance exists in their behavior.

Accepted Answer

The answer of The ________ method is a simulation technique...

Question 11

Simulation can use any probability distribution that the user defines.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is TRUE regarding simulation?

Accepted Answer

A) Small problems can be done by hand. 
B) Most simulations are computerized. 
C) Real-world complications can be included in simulation models. 
D) Simulation is most suitable where standard analytical models are too complex. 
E) All of the above are true. 
A) Small problems can be done by hand. 
B) Most simulations are computerized. 
C) Real-world complications can be included in simulation models. 
D) Simulation is most suitable where standard analytical models are too complex. 
E) All of the above are true.

Question 13

Simulation may be capable of producing a more appropriate answer to a complex problem than can be obtained from a mathematical model.

Accepted Answer

A) True 
 B)False

Question 14

The idea behind simulation is threefold: (1)to imitate a real-world situation mathematically, (2)then to study its properties and operating characteristics,and (3)finally to draw conclusions and make action decisions based on the results of the simulation.

Accepted Answer

A) True 
 B)False

Question 15

Complete the following table in preparation for a Monte Carlo simulation.

Accepted Answer

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

Question 16

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 17

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?

Accepted Answer

A) 0.05 
B) 0.075 
C) 0.10 
D) 0.15 
E) 0.005 
A) 0.05 
B) 0.075 
C) 0.10 
D) 0.15 
E) 0.005

Question 18

Which of the following are advantages of simulation? I.time compression
II."what-if?" questions are possible
III.flexibility
IV.repetitive approach
V.input must be user generated

Accepted Answer

A) I,III,V 
B) I,II,V 
C) II,III,IV,V 
D) I,II,IV,V 
E) I,II,III 
A) I,III,V 
B) I,II,V 
C) II,III,IV,V 
D) I,II,IV,V 
E) I,II,III

Question 19

What is the cumulative probability of selling 4 tires?

Accepted Answer

A) 1 
B) .5 
C) 10 
D) .2 
E) .25 
A) 1 
B) .5 
C) 10 
D) .2 
E) .25

Question 20

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 Diamond Boutique 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 the store over 12 months.
   Random numbers for sales: 10,24,03,32,23,59,95,34,34,51,08,48

Accepted Answer

@#IMG-DLM& @#IMG-DLM& Over the

Exam 27: Modeling with Simulation

One effective use of simulation is to study problems for which the mathematical models of operations management are not realistic enough.

Explain how Monte Carlo simulation uses random numbers.

A(n)________ is a series of digits that have been selected by a totally random process.

One of the advantages of simulation is that:

One of the disadvantages of simulation is that it:

One of the disadvantages of simulation is that it:

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

Identify,in order,the five steps required to implement the Monte Carlo simulation technique.

Historical records on a certain product indicate the following behavior for demand.The data represent the 288 days that the business was open during 2000.Convert these data into random number intervals.(Round each probability used to 2 decimal places,e.g. ,0.36)

The ________ method is a simulation technique that uses random elements when chance exists in their behavior.

Simulation can use any probability distribution that the user defines.

Which of the following is TRUE regarding simulation?

Simulation may be capable of producing a more appropriate answer to a complex problem than can be obtained from a mathematical model.

The idea behind simulation is threefold: (1)to imitate a real-world situation mathematically, (2)then to study its properties and operating characteristics,and (3)finally to draw conclusions and make action decisions based on the results of the simulation.

Complete the following table in preparation for a Monte Carlo simulation.

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

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?

Which of the following are advantages of simulation? I.time compression II."what-if?" questions are possible III.flexibility IV.repetitive approach V.input must be user generated

What is the cumulative probability of selling 4 tires?

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