Decision variables may also be called parameters. Model Variables can be control

Question

Decision variables may also be called parameters. Model Variables can be controllable or uncontrollable. A series of steps or procedures than are repeated in known as an algorithm. One reason inventory is required is the uneven flow of resources through a company. A model is a representation of situation. Sensitivity analysis helps us estimate the effect of known and unknown errors in our model. A moving average forecasting method is a causal forecasting method. An exponential forecasting method is a time-series forecasting method. A trend-projection forecasting method is a causal forecasting method. A medium-term forecast typically covers a two- to four-year time horizon. The two fundamental decisions that you have to make when controlling inventory are: (1) how much to order, and (2) how much money to spend. Regression is always a superior forecasting method to exponential smoothing, so regression should be used whenever the appropriate software is available. All decisions that result in a favorable outcome are considered to be good decisions The difference in decision making under risk and decision making under uncertainty is that under risk, we think we know the probabilities of the states of nature, while under uncertainty we do not know the probabilities of the status of nature. The decision theory processes of maximizing Expected Monetary value and minimizing. Expected Opportunity Loss should lead us to choose the same alternatives. Inventory is such an expensive asset that it may account for as much as 50 percent of a firms invested cap The same ratio of marginal loss to the sum of marginal loss and marginal profit is used to solve one- inventory models for both discrete and continuous probability distributions. In ABC inventory analysis items in the "A" group should have the lowest dollar value to the firm. The costs involved in a typical inventory model are order costs, management costs, and holding costs Inventory is any stored resource that is used to satisfy a current or future need.

Explanation / Answer

1.)   False

Reason The decision variable may be varied as per the need but parameters remain fixed.

2.) True

Model variables can be controllable or uncontrollable.

3.)   True

A series of steps or procedure that is repeated is known as an algorithm.

4.) True

One reason inventory is required is the uneven flow of resources through company.

5.) True

. A model is a representation of real objects or situation.

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