In the single period inventory model, if the unit salvage value equals the unit cost of the good, the optimal service level will be:
A)0.
B)50%.
C)100%.
D)unknown.

Question

Quizplus · Accepted Answer

In the single period inventory model, if the unit salvage value equals the unit cost of the good, it means there is no loss on unsold inventory. Therefore, the retailer can aim for a 100% service level without risking financial loss due to unsold stock, as any unsold items can be salvaged (sold off) for their cost value.

In the Single Period Inventory Model, If the Unit Salvage