Which of the following is NOT a key input in a single-period inventory model?
A) Probability distribution of demand
B) Probability that demand is less than the optimal order quantity
C) Cost per item of overestimating demand
D) Cost per item of underestimating demand

Question

Quizplus · Accepted Answer

In a single-period inventory model, the key inputs are the probability distribution of demand, the cost per item of overestimating demand, and the cost per item of underestimating demand. The probability that demand is less than the optimal order quantity is not a key input in this model as it can be calculated using the probability distribution of demand.

Which of the Following Is NOT a Key Input in a Single-Period