Suppose you run a simulation model several times with different order quantities.What can we infer about the quantity that maximizes the output,the company's profit?
A)This quantity is the optimal order quantity.
B)This quantity might be the optimal order quantity,but we also need to consider the company's attitude toward risk.
C)This is not necessarily the optimal order quantity,because it may have produced the largest profit by luck.
D)We cannot infer anything about the quantity.

Question

Quizplus · Accepted Answer

The quantity that maximizes profit in a simulation might be optimal, but risk preferences and other factors should also be considered.

Suppose You Run a Simulation Model Several Times with Different