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A company experiences both variable usage rates and variable lead times for its inventory items. The probability distributions for both usage and lead times are known. A technique the company could use for determining the optimal safety stock levels for an inventory item is:
A. Queuing theory.
B. Linear programming.
C. Decision tree analysis.
D. Monte Carlo simulation.
Answer: D
Explanation:
Simulation is a technique for experimenting with mathematical models using a computer. Monte Carlo simulation is a technique to generate the individual values for a random variable. A random number generator is used to produce numbers with a uniform probability distribution. The second step of the Monte Carlo process then transforms the random numbers into values consistent with the desired distribution. The performance of a model under conditions of uncertainty may be investigated by randomly selecting values for each of the variables in the model based on the probability distribution of each variable and then calculating the value of the solution. Advantages of Monte Carlo simulation are that time can be compressed, alternative policies can be considered, and complex systems can be analyzed.

NEW QUESTION: 3
Hyperledger Composer has the following two main components.
A. Distributed Ledger and a Business Network Archive
B. Composer Playground and a Business Network Configuration
C. Distributed Ledger and Composer playground
D. Composer Framework and a Business Network Archive
E. Composer Playground and a Business Network Archive
Answer: E
Explanation:
Explanation
There are two parts: 1. Business Network Archive which essentially captures the core data in a business network, including the business model, transaction logic, and access controls, the Business Network Archive packages these elements up and deploys them to a runtime. Business Network Archive files are stored as
".bna" files. AND 2. Composer Playground which is web-based tool allows developers to learn Hyperledger Composer, model out their business network (domain), test that network, and deploy that network to a live instance of a blockchain network. The playground keeps the development model in browser storage, allowing them to be easily uploaded or downloaded.


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