In some inventory models, the optimal behavior occurs when ordering costs and carrying costs are equal to one another. Provide an example of a model where this rule does not hold; explain how the model's results are optimal anyway
What will be an ideal response?
This rule will not hold in all instances of the quantity discount model. In order to take advantage of a discount, it may be cheaper to order a quantity that is not an EOQ. The goal in quantity discount models is to minimize the sum of ordering, carrying, and product costs.
Business
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What will be an ideal response?
Business
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a. independent vertical marketing system b. partially integrated vertical marketing system c. fully integrated vertical marketing system d. dual vertical marketing system
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