CMA Final · Strategic Cost Management · Simulation
Daily demand for a product is 100 units (probability 0.2), 200 units (0.5) or 300 units (0.3). Two-digit random numbers 00-99 are used. The random numbers for four successive days are 12, 74, 45 and 68. What is the total simulated demand for the four days?
Total simulated demand is 800 units. The random number ranges are 00-19 for 100 units, 20-69 for 200 units and 70-99 for 300 units. The four numbers map to 100, 300, 200 and 200 units, which sum to 800.
- A800 unitsCorrect
- B700 units
- C900 units
- D600 units
Explanation
Intervals are 00-19 for 100, 20-69 for 200 and 70-99 for 300. So 12→100, 74→300, 45→200, 68→200. The total is 800 units. Treating 74 as 200 would give 700.
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