Question

Single-period inventory models are used in situations involving:________
a. perishable items that cannot be carried in inventory.
b. items that can be sold in future periods.
c. orders with a fixed lot size.
d. problems that cannot be solved using marginal economic analysis.

Answer 1

Answer:

Single-period inventory models are used in situations involving A) Perishable items that cannot be carried in inventory.

Explanation:

Single-period is a type of inventory model in which there is no fixed amount of product even when the business is ordering the product, there is uncertainty about the size of the lot as well as whether the product will be completely sold out or will remain in the inventory.

This type of inventory model involves the dealing of perishable or seasonal goods that cannot be carried forward in the inventory to sell in the future time. This problem is solved using the marginal analysis to have an approximate idea about the size of the lot.