Many people believe that a single-period inventory model is not applicable for, but it turns out they were wrong. This study sheds new light on the application of this model and how it can be used to understand inventory management within a business.
In this study, the researchers analyzed a company’s inventory data to show how it was used for management. They found that in order to better understand and manage the business’ inventory levels, companies should use an accounting method called ABC Analysis.
This analysis allowed them to see where their costs were coming from and what they could do about it if there is too much or not enough of a product on hand at any given time.
The model also helps demonstrate different scenarios as well so you can collect information before making decisions based off those scenarios. What We Learned: Inventory models are useful when analyzing businesses because they allow managers to make good decisions based off various conditions related to that industry like supply-and-demand curves and shortages within shelves all around
