Suppose you run a simulation model several times with different order quantities. What can we infer about the 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 simulation model can provide insight into the order quantities that could potentially maximize profit. However, other factors such as the company's risk attitude need to be considered before determining the optimal order quantity. It is important to not solely rely on luck or simulation results without considering other important factors.

Suppose You Run a Simulation Model Several Times with Different