Which of the following is a unique assumption of the quantity discount model? Le

Question

Which of the following is a unique assumption of the quantity discount model? Lead time does not vary Annual demand is known Each order is received in a single delivery Customers are willing to tolerate stockouts Price per item decreases as order quantity increases Service guarantees are useful for organizations for all of the following reasons EXCEPT: they reduce producer's risk they provide valuable information about service failures they force a company to identify its customers' expectations they help improve the service delivery system and its procedures an unambiguous guarantee for the customer also sets clear standards for the organization

Explanation / Answer

1) option E (Price per item decreases as order quantity increases)

2) ootion A (they reduce producer's risk)

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