With regard to a simulation model for inventory management, all of the following are correct EXCEPT:
A) it results in an optimal solution with a large simulation.
B) many days of simulation run are needed to obtain meaningful results.
C) lead time can vary.
D) it assumes that a specific reorder point and order quantity have been selected.

Question

Quizplus · Accepted Answer

A simulation model for inventory management does not necessarily always result in an optimal solution, as factors such as changing customer demand and supplier reliability can impact inventory levels. While a simulation can provide insights and recommendations, it does not guarantee an optimal solution.

With Regard to a Simulation Model for Inventory Management, All