Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 4: Q. 20-1PE (page 554)

What model is most appropriate for making a one-time purchase of an item?

Short Answer

Expert verified

Single-period model is the most appropriate for making a one-time purchase of an item.

Step by step solution

01

Definition of Single-period model

Single-periodinventory model is employed when an organization makes a one-time ordering decision or a one-time buying of stock. Though single-period inventory model is perishable and there's no replenishment of stock, the corporation should calculate the amount of items to purchase in order to minimize deficiency but also to avoid having leftover stock.

02

Explanation

The model that is most appropriate for making a one-time purchase of an item or product isthe Single-period model.. For instance, when an organization purchases shirts or flags to sell at a game between two teams, the corporate uses a single-period inventory model.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Question: Let’s say you work for a company that makes prepared breakfast cereals like corn flakes. Your company is planning to introduce a new hot breakfast product made from whole grains that would require some minimal preparation by the consumer. This would be a completely new product for the company. How would you propose forecasting initial demand for this product?

What company is the largest ERP vendor?

Ordering exactly what is needed each period without regard to economic considerations.

These are the six major components of demand?

This is the amount needed after considering what we currently have in inventory and what we expect to arrive in the future.

See all solutions

Recommended explanations on Business Studies Textbooks

Organizational Behavior

Read Explanation

Managerial Economics

Read Explanation

Managers

Read Explanation

Influences On Business

Read Explanation

Operational Management

Read Explanation

Strategic Analysis

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free