Question 7 2 pts Which of the following methods covered this semester is also a valid method for evaluating transportation carriers? ® cost profit volume analysis auction ● newsvendor model ● Weighted average method

Question 7 2 pts Which of the following methods covered this semester is also a valid method for evaluating transportation carriers? ® cost profit volume analysis auction ● newsvendor model ● Weighted average method

 

Solution

Weighted average method is used for foresting of the independent demand items.

Newsvendor model is applied for single period perishable items such as bakery products or seasonal products

Auction method is applied for sourcing and procurement purpose

Cost-profit-volume analysis consists of analyzing effect of fixed and variable cost