The production run model is useful when a firm purchases inventory that is delivered over a period of time.

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The production run model is designed to help firms determine the optimal quantity to order when purchasing inventory that is delivered over a period of time. By taking into account factors such as lead time, carrying costs, and order costs, the model can help minimize inventory costs and ensure that the firm has enough stock to meet customer demand. Overall, the production run model is a useful tool for firms that need to manage their inventory levels efficiently.

The Production Run Model Is Useful When a Firm Purchases