The same ratio of marginal loss to the sum of marginal loss and marginal profit is used to solve one-period inventory models for both discrete and continuous probability distributions.

Question

Quizplus · Accepted Answer

This statement is true as the same ratio, known as the critical ratio, is used to determine the optimal order quantity in both discrete and continuous probability distributions in one-period inventory models.

The Same Ratio of Marginal Loss to the Sum of Marginal