Reference no: EM132218986

(1) continuous review model (EOQ), (2) periodic review model, and (3) newsvendor model. Each of these models is appropriate for different types of products and different product life cycles. When applying each of the three methods, you calculate order quantity differently, focus on different costs and compute different metrics (e.g., reorder point, target level, service level, critical fractile). In this problem I would like you to do the following:

1) For each of the three inventory management models, describe a hypothetical situation in which that model is appropriate. This means, for each of the 3 models:

a) Name a specific business, industry or product for which you think that model is appropriate

b) Given a 1-2 sentence justification of why you think that business/industry/product fits with the stated model

c) For that business, industry or product, tell me what needs to be calculated based on the model you selected (a single shot order quantity, a target replenishment level, an order quantity that is repeated, a re-order point, a service level, safety stock, etc.) Basically, what I am asking is for you to describe how each of the models function by citing what information is relevant and what decisions need to be made in each. Please keep your descriptions of each model separate and address one model at a time. (Try to keep your answers between 3 and 10 sentences for each model: a total of 9 to 30 sentences).