Which of the following items is mostly likely managed using a single-period order model?
A) Christmas trees
B) canned food at the grocery store
C) automobiles at a dealership
D) metal for a manufacturing process
E) gas sold to a gas station

Question

Quizplus · Accepted Answer

A single-period order model is used when ordering a product that has a short selling season or limited shelf life, and the goal is to maximize profit by ordering the optimal quantity for that period. Christmas trees have a short selling season and are perishable, so they are a good candidate for a single-period order model. Canned food, automobiles, metal, and gas are typically ordered in larger quantities and have longer shelf lives, making them better candidates for other inventory models such as the Economic Order Quantity (EOQ) model.

Which of the Following Items Is Mostly Likely Managed Using