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
E)A,B,and C

Question

Quizplus · Accepted Answer

In an inventory model that requires simulation, demand and lead time are probabilistic variables that need to be simulated to determine their impacts on inventory level and costs. Holding cost is a deterministic variable that can be calculated directly. Therefore, only option D (Both A and B) is the best choice as it covers the probabilistic variables that require simulation.

Which of the Following Variables Are Probabilistic in an Inventory