Question

Which inventory model would be the most useful for perishable goods in a grocery chain? Why? Which would be the most appropriate for gasoline at a service station?

Answer 1

Answer 1
The inventory model that would be most useful for perishable goods in a grocery chain is is ABC analysis. ABC analysis categories inventory based on the level of importance. For perishable goods in a grocery store this would be the best suited because it categories inventory based on level of importance and focuses on every attention. It also takes into account the just in time method which is best suited for perishable grocery.
Answer 2
The most appropriate method for a gasoline at a service station is inventory production quantity because this model tells the number of product the business should order in a single batch and it focuses on reducing the holding cost and setup cost. This method also assume that each order is delivered by supplier in parts to the business rather than in one full product and for gasoline at a service station it will be quite suitable.

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