Q1) Different approaches for creating systems simulation models include

a) Inventory and waiting line approaches.

b) Process modelling and event-driven approaches.

c) Monte-Carlo and Latin Hypercube approaches.

d) Logic testing and activity processing approaches.

Q2) Describing changes that entities in system undergo in chronological order by occurrence is called

a) Activity scanning.

b) Process modelling.

c) event-driven simulation.

d) Waiting line modelling.

Q3) In inventory simulation model, setting level of safety stock requires

a) Desire to protect against shortages due to uncertain demand.

b) Distribution of expected demand.

c) The desired probability of no stock-outs.

d) All of the above

Q4) Inventory system reorders at 300 units. Ordering cost per order is $8 and holding cost per unit is $1. Annual demand is 10,000 units. Firm presently orders 500 units per order. Total holding cost for this system is

a) $500

b) $250

c) $160

d) $410