Practical Management Science, Loose-leaf Version
Practical Management Science, Loose-leaf Version
5th Edition
ISBN: 9781305631540
Author: WINSTON, Wayne L.; Albright, S. Christian
Publisher: Cengage Learning
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Chapter 12, Problem 1.1C
Summary Introduction

To determine: The optimal number of tokens to hoard.

Case summary:

The riders in City M must pay for the ride by purchasing a token for it. In the year 2014, the transit officials announced that they are looking a fare increase in the prices. This led to the commuters to hoard tokens before the fare increase is implemented.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

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