Practical Management Science
Practical Management Science
5th Edition
ISBN: 9781305250901
Author: Wayne L. Winston, S. Christian Albright
Publisher: Cengage Learning
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Chapter 12, Problem 1.3C
Summary Introduction

To determine: The present value of the savings if it is only decided to hoard 0.8Q.

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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