In the Quantity Discount Model, It Is Possible to Have

question 160

True/False

In the quantity discount model, it is possible to have a cost-minimizing solution where annual ordering costs do not equal annual carrying costs.

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Definitions:

Thorndike

An influential psychologist known for his work on learning theory and the law of effect, which states that actions followed by positive outcomes are more likely to be repeated.

Negative Punishment

A behavior modification technique where a desirable stimulus is removed following an unwanted behavior to decrease the likelihood of that behavior occurring in the future.

Primary

Referring to something that is first in order, importance, or rank.

Secondary Reinforcers

Reinforcements that are learned through association with primary reinforcers and are not necessarily satisfying by themselves (e.g., praise, money).