Which of the following is not an assumption of the perishable product model?
A)Each application involves a single time period
B)It is possible to dispose of any units of the product remaining at the end of the period
C)The only decision to be made is how many units to order
D)The probability distribution of demand is unknown
E)There are costs incurred for both underordering and overordering

Question

Which of the following is not an assumption of the perishable product model?
A)Each application involves a single time period 
B)It is possible to dispose of any units of the product remaining at the end of the period 
C)The only decision to be made is how many units to order 
D)The probability distribution of demand is unknown 
E)There are costs incurred for both underordering and overordering

Quizplus · Accepted Answer

The perishable product model assumes a known probability distribution of demand, so option D is not an assumption of this model.

Which of the Following Is Not an Assumption of the Perishable