Outline two reasons for using a computer simulation in this scenario.

Identify two data inputs for this computer simulation model.

Identify two criteria that may be used to determine the best location to build the distribution centre.

Discuss how the simulation model will use the data inputs in (b)(i) and the criteria identified in (b)(ii) to generate recommendations.

Outline why the use of a computer simulation may not be beneficial.

Award [1 mark] for reason and [1 mark] for expansion [4 marks max].
Cost;
Building a distribution centre is expensive so it is impractical to build four centres to see which one is the best location / build the centre in a poor site location;

Time;
The time to build and run the simulation is much less than building a distribution centre;

Amendments to input data / extra variables added;
The simulation could be adjusted to factor in unforeseen variables / run worst case scenario e.g. roadworks, changes in traffic congestion, new housing being built in the area;

Mark as [2] and [2].

Award [2 max].
Road networks to and from the distribution sites;
Location of the supermarkets / distance to the supermarkets;
Location of the port / airport / station that delivers the products to the distribution centre;
Cost of the land for each of the sites;
Average labour costs in the area;
Time taken to drive from the site to each supermarket at different times of the day;

Award [2 max].
Overall costs to build the distribution centre for each site;
Running costs to receive shipments / distribute goods;
Time taken to build the distribution centre at each of the sites;
Time taken to distribute goods / shipments to arrive;

Award [6 max].

Overall costs to build the distribution centre for each site;
Inputs of labour rate, time taken to build, cost of land are inputted;
Simulation is run with a variety of scenarios (e.g. number of workers, rate of pay for labour; cost of materials);

Running costs to receive shipments / distribute goods;
Inputs of fuel cost, distance to each supermarket / sites, fuel economy, number of trips, etc.
Simulation is run with a variety of scenarios (eg fuel price increases, congestion reduces fuel economy, more trips needed to ship goods)

Time taken to build the distribution centre at each of the sites;
Inputs for number of diggers, number of workers, building materials delivery schedule;
Simulation is run with scenarios (delay in window deliveries, change in the number of builders, etc.)

Time taken to distribute goods / shipments to arrive;
Inputs for time taken to travel to destination, number of vehicles; length of time to load / unload goods, etc.;
Simulation is run with scenarios (e.g. Increased traffic congestion, number of vehicles shipping goods, etc.)

Award [2 max].
The cost outweighs the benefit;
It may be impossible to simulate a simulation / too many variables / too many confounding factors;
No positive reasons such as time/danger/modification;