Question

When applying simulation to a business problem, which of the following would commonly be an uncertain variable cell?

a. The total profit.
b. The holding cost per unit.
c. The demand.
d. All of the above.
e. None of the above.

Answer 1

The Demand would commonly be an uncertain variable cell

Step-by-step explanation:

Consumer demand is a catalyst for retail sales. In turn, production and delivery to distributors must continue for suppliers and distributors. The lack of an adequate inventory to satisfy consumer demand is an important business issue with several symptoms.

The first major problem with inadequate inventory to meet demand is revenue failure.

In the long run, the depletion of consumers is a major concern not to meet consumer demand.

When you have unhappy customers on the street you have poor word of mouth ads. Although the issues in the company carry more weight, failure to meet consumer demand has several other economic effects.

For a client, realising a commodity you want is not available is disappointing.