Deck 19: Supplement Operational Decision-Making Tools: Simulation

Question 1

Random numbers can be generated in Excel by using the formula

A)=RANDOM)
B)=RANDO)
C)=RAND)
D)=RANDNUM)

Answer 1

C

Question 2

Simulation is one of the best means for analyzing inventory systems in which demand is

A)known with certainty
B)a constant
C)a random Variable
D)periodic

Answer 2

C

Question 3

A steady state result is the

A)the average of all the results of a simulation
B)the constant average a simulation result reaches after being repeated a large number of times
C)the average of the first 100 simulation trials
D)the most frequent result in a simulation experiment

Answer 3

B

Question 4

Simulation is a popular quantitative technique because

A)it can be applied to operational problems
B)it can be applied to problems too complex to model and solve analytically
C)it is easy to use with the proper software
D)it can be applied to most operational problems using Excel

Question 5

The name "Monte Carlo" simulation comes from the fact that

A)was first derived by Lord Kelvin who lived in Monte Carlo
B)its first application was to study traffic patterns in Monte Carlo
C)its basic process is the same as gambling devices found in Monte Carlo
D)its basic process is based on the Monte Carlo Grand Prix

Question 6

In Excel in order to generate values from a cumulative probability distribution we would first cover the cells they are in with the curser and give this range of cells the name

A)=RANDO)
B)NAME
C)DEFINE
D)LOOKUP