HMMS used only linear cost equations to approximate the actual cost system for the PPG job shop.

Question

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HMMS (Holt, Modigliani, Muth, and Simon) used a piecewise linear approximation, not solely linear cost equations, to model the actual cost system for the PPG (Pittsburgh Plate Glass) job shop. This approach allowed for a more accurate representation of the cost system by accounting for different cost behaviors under varying levels of production.

HMMS Used Only Linear Cost Equations to Approximate the Actual