In a one-period inventory model,the more profitable the item during the sales season,the higher the order placed at the start of the season.

Question

Quizplus · Accepted Answer

This statement is true because in a one-period inventory model, the goal is to maximize the profit earned from selling a certain item during a fixed sales season. Therefore, it makes sense that the higher the expected profitability of an item during the sales season, the larger the order placed at the start of the season. This is because the more inventory of a profitable item a retailer has on hand, the more profit they can potentially earn during the sales season.

In a One-Period Inventory Model,the More Profitable the Item During