Deck 13: Operational Decision-Making Tools: Simulation

Question 1

Simulation is the preferred technique for problems with random variables represented by probability distributions.

Answer 1

True

Question 2

Simulation is often viewed as the technique of last resort because it can be applied to situations when there is no applicable quantitative model.

Answer 2

True

Question 3

Simulation analysis is useful for operational problems that

A)are easy to solve analytically.
B)can't be solved analytically.
C)require an optimal solution.
D)meet specific analytical criteria.

Answer 3

can't be solved analytically.

Question 4

The weekly capacity measured in machine hours for a small machine shop follows the probability distribution shown below:

Based on the probability distribution above,the expected value,or average hours of weekly capacity for the machine shop is

A)500 hours.
B)490 hours.
C)480 hours.
D)475 hours.

Question 5

Simulation analysis is the preferred method used at hospitals to determine the type of treatment a patient requires.

Question 6

The weekly capacity measured in machine hours for a small machine shop follows the probability distribution shown below:

Use the following random numbers to simulate weekly capacity for the machine shop for the next five weeks: 93,31,71,8,6.
If the first random number interval begins with 1,then the minimum capacity for the simulated five week period is

A)560.
B)520.
C)440.
D)400.

Question 7

Because simulation is used to analyze probabilistic problems it provides information that is used to make a decision versus an optimal solution.

Question 8

A random number's likelihood of being selected is based on a normal distribution.

Question 9

The ______________ technique selects numbers randomly from a probability distribution for use in a trial run of a simulation.

A)Computer World
B)Monaco
C)steady-state
D)None of the above.

Question 10

At a Wal-Mart store,simulation can be used to analyze waiting lines at check-out stands to determine the required staffing levels.

Question 11

The Monte Carlo technique selects numbers randomly from a probability distribution for use in a quantitative model.

Question 12

The weekly demand for a company's product follows the probability distribution below:

The expected value,or average,weekly demand is

A)137.50.
B)142.50.
C)153.75.
D)165.75

Question 13

As a simulation model becomes more complex,using a computer application is virtually impossible.

Question 14

A steady state results when a simulation is repeated enough times that the random variable being investigated reaches an average result that remains constant.

Question 15

After a sufficient number of simulation runs a steady state results when the variable being investigated reaches an _________ value that remains constant.

A)optimal
B)average
C)expected
D)estimated

Question 16

Simulation is a popular decision-making tool that provides a solution to any type of problem

Question 17

An advantage of using a computer versus a manual approach when performing a simulation is that it often takes only seconds versus hours to reach a steady-state result.

Question 18

The weekly demand for a company's product follows the probability distribution below:

Use the following random numbers to simulate the product's demand for the next five weeks: 72,27,93,17,47.
If the first random number interval begins with 1 then the total demand for the simulated five week period is

A)700.
B)650.
C)625.
D)550.

Question 19

The weekly demand for a company's product follows the probability distribution below:

Use the following random numbers to simulate the product's demand for the next five weeks: 72,27,93,17,47.
If the first random number interval begins with 1 then the average weekly demand for the simulated five week period is

A)137.50.
B)140.00.
C)142.50.
D)152.50.

Question 20

The Monte Carlo technique is a mathematical model used within a simulation.

Question 21

What is simulation and why is it a popular decision-making tool?

Question 22

In what ways is simulation relevant to analyzing production problems?