Which of the following graphs correctly portrays the relationship between inventory level (y-axis) and time (x-axis) according to the economic order quantity model? O O A. B

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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**Question:**
Which of the following graphs correctly portrays the relationship between inventory level (y-axis) and time (x-axis) according to the economic order quantity model?

**Graph Descriptions:**

1. **Option A:** 
   - The graph shows a parabolic curve, opening upwards. The inventory level decreases initially and then increases again over time, forming a 'U' shape.

2. **Option B:**
   - The graph depicts a step-like pattern, starting at a higher inventory level and decreasing linearly over time with a sudden jump back to the initial level, repeating this cycle.

**Explanation:**
The economic order quantity model typically portrays inventory levels decreasing steadily over time due to consumption, followed by a restock which resets the inventory level to its maximum. Based on this description, identify the correct graph.
Transcribed Image Text:**Question:** Which of the following graphs correctly portrays the relationship between inventory level (y-axis) and time (x-axis) according to the economic order quantity model? **Graph Descriptions:** 1. **Option A:** - The graph shows a parabolic curve, opening upwards. The inventory level decreases initially and then increases again over time, forming a 'U' shape. 2. **Option B:** - The graph depicts a step-like pattern, starting at a higher inventory level and decreasing linearly over time with a sudden jump back to the initial level, repeating this cycle. **Explanation:** The economic order quantity model typically portrays inventory levels decreasing steadily over time due to consumption, followed by a restock which resets the inventory level to its maximum. Based on this description, identify the correct graph.
The image presents two line graphs, each depicting a series of connected triangular shapes. 

Graph C (top graph):
- The graph consists of two connected triangular peaks.
- Each triangle starts at the base with its peak reaching upwards, then returning back to the baseline.
- The pattern repeats once.

Graph D (bottom graph):
- The graph consists of three connected triangular peaks.
- Each triangle follows a similar pattern: starting from the baseline, reaching a peak, and returning to the baseline.
- The pattern repeats twice.

Each option is marked with a circular indicator to the left, suggesting a multiple-choice selection format.
Transcribed Image Text:The image presents two line graphs, each depicting a series of connected triangular shapes. Graph C (top graph): - The graph consists of two connected triangular peaks. - Each triangle starts at the base with its peak reaching upwards, then returning back to the baseline. - The pattern repeats once. Graph D (bottom graph): - The graph consists of three connected triangular peaks. - Each triangle follows a similar pattern: starting from the baseline, reaching a peak, and returning to the baseline. - The pattern repeats twice. Each option is marked with a circular indicator to the left, suggesting a multiple-choice selection format.
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