Which of the following inventory model(s) require the firm to continuously track its inventory level? (a) Basestock (b) (Q,R) (c) Newsvendor (d) Basestock and Newsvendor (e) Basestock, (Q,R), and Newsvendor

Which of the following inventory model(s) require the firm to continuously track its inventory level?

(a) Basestock

(b) (Q,R)

(c) Newsvendor

(d) Basestock and Newsvendor

(e) Basestock, (Q,R), and Newsvendor

 

Solution

Among the given models (Q,R) model is computer based and automatically gives us the value of the inventory. Hence it does not need constant tracking. Basestock and newsvendor models need tracking continuosly as they need their inventory to be refilled at regualr intervals. But in basestock model lack of inventory does not cause any