Question

Which of the following inventories will most likely be planned by a hardware chain using a newsvendor model? Which of the following inventories will most likely be planned by a hardware chain using a newsvendor model?

a. Nitrile gloves
b.Hammers c.Nails
d.Pallets of plywood
e.Christmas trees
f.Duracell batteries

Answer 1

A hardware chain using a newsvendor model would most likely plan inventories of items with unpredictable demand and short shelf life, such as Christmas trees, Duracell batteries, and nitrile gloves.

Step-by-step explanation:

A hardware chain using a newsvendor model would most likely plan inventories of items with unpredictable demand and short shelf life. Examples of such inventories include:

• Christmas trees: These are seasonal items with a specific demand period, making it difficult to accurately predict the exact number of trees that will be sold.
• Duracell batteries: The demand for batteries can vary significantly, and it is challenging to accurately forecast the quantity needed.
• Nitrile gloves: The demand for gloves can fluctuate based on various factors, such as public health concerns or specific events.

In contrast, items like hammers, nails, and pallets of plywood have more predictable demand and longer shelf life, making them less suitable for planning using a newsvendor model.