Which of the following variables are probabilistic in an inventory model that requires simulation?
A)demand only
B)lead time only
C)holding cost only
D)both A and B

Question

Quizplus · Accepted Answer

In an inventory model that requires simulation, both demand and lead time are probabilistic variables that need to be simulated to determine the optimal inventory levels. Holding cost, on the other hand, is a deterministic variable that can be specified without simulation. Therefore, the best choice is D, as it includes all the required probabilistic variables.

Which of the Following Variables Are Probabilistic in an Inventory