The managerial R,Q model is called “managerial” because it should be used by managers. TRUE/FALSE The newsvendor...

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General Management

The managerial R,Q model is called “managerial” because itshould be used by managers. TRUE/FALSE
The newsvendor model does not consider ordering costs since itis assumed that the cost of placing an order is zero.TRUE/FALSE
In a newsvendor context, the cost of overstocking per unit canbe computed as follows:
Purchase cost – sales price + disposal cost
Order placement cost + inventory holding cost – stockoutcost
Disposal cost – salvage value + purchase cost
Salvage value + sales price – purchase cost
What is the objective of a newsvendor model?
Maximize customer sales
Minimize inventory levels
Minimize the sum of the costs of over- and understocking
Minimize the sum of ordering and holding costs

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1 The managerial RQ model is called as Managerial because with the help of the RQ model the managerial decisions can be taken correctly as well as logically regarding the stock levels and the cost associated with it Not because it should be used by the managers only Hence the See Answer

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