What is a system for ordering items that have little or no value at the end of a sales period?
c) single-period inventory model
d) production order quantity model
Single Period Inventory Model
A business scenario faced by companies that order seasonal or one-time items because of the products being highly perishable in nature is considered as Single Period Inventory Model. There is only one chance to get the quantity right when ordering, as the product has no value after the time it is needed. Single period inventory models are used typically for determining the optimal order quantity for a perishable product.
Single Period Inventory Model differs from EOQ model in a sense that the Single Period Inventory Model allows demand to be variable and random whereas the EOQ model assumes uniform and deterministic demand.