Exam 27: Modeling with Simulation

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?

Simulation provides optimal solutions to problems.

One of the disadvantages of simulation is that it:

What are the advantages and disadvantages of simulation models?

Explain what is meant by the statement: "simulation is not limited to using the standard probability distributions."

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.What are the two-digit random number intervals for this distribution beginning with 01?

Which of the following is an idea behind simulation?

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

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 which of the following?

Which of the following statements regarding simulation is TRUE?

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

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

By starting random number intervals at 01,not 00,the top of each range is the cumulative probability.

Identify the seven steps involved in using simulation.

Define simulation.