In the Single-Period Inventory Model with Probabilistic Demand

question 4

Multiple Choice

In the single-period inventory model with probabilistic demand,

• A)surplus items are not allowed to be carried in future inventory.
• B)c_o = c_u.
• C)probabilities are used to calculate expected losses.
• D)All of these are correct.

---

Definitions:

Fast Fashion

A term used to describe clothing designs that move quickly from the catwalk to stores to meet new trends.

Seasonal Output

Variation in the production or supply of certain products or services that is caused by changes in the season.

Short-Term Demand Forecasts

Predictions about future customer demand over a short period, usually up to one year, critical for successful inventory and production planning.

JIT

Just-In-Time, a production strategy that aims to reduce times within the production system as well as response times from suppliers and to customers.