Which Inventory Model Is Most Appropriate If Unused or Unsold

question 146

Multiple Choice

Which inventory model is most appropriate if unused or unsold items cannot be carried over to subsequent periods?

• A)Economic order quantity
• B)Economic production quantity
• C)Single period
• D)Quantity discount
• E)Reorder point

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Definitions:

Firm's Profit

The financial gain achieved by a company, derived from its revenues after subtracting all expenses.

Nash Equilibrium

A state in strategic interactions where each participant's chosen strategy leaves them with no incentive to deviate, given the choices of others.

Cournot Model

A economic model describing an industry structure in which companies compete on the quantity of output they decide to produce, assuming their rivals' decisions are fixed.

Bertrand Model

An economic model of competition among firms, where firms choose prices rather than quantities to compete.