Which inventory model is most appropriate if unused or unsold items cannot be carried over to subsequent periods?
A)Economic order quantity
B)Economic production quantity
C)Single period
D)Quantity discount
E)Reorder point

Question

Quizplus · Accepted Answer

The single period model is most appropriate when unused or unsold items cannot be carried over to subsequent periods. This model is used for one-time purchases or sales, where the goal is to optimize the order quantity to maximize profit or minimize loss for that single period. The economic order quantity and economic production quantity models assume that inventory can be carried over to subsequent periods, while the quantity discount and reorder point models address situations where inventory is carried over but make different assumptions about the behavior of demand and supply.

Which Inventory Model Is Most Appropriate If Unused or Unsold