Use of the single-period model will maximize profit in every season.

Question

Quizplus · Accepted Answer

The single-period model is based on making a one-time decision on how much to produce to maximize profit for a specific season. However, it does not consider the long-term effects on inventory or customer demand. In some cases, using the multi-period model may lead to higher profits over time. Therefore, the statement that the single-period model will always maximize profit in every season is false.

Use of the Single-Period Model Will Maximize Profit in Every