
In previous chapters we have concentrated on techniques or models involving single values that are known with certainty. Examples of these are break-even analysis and linear programming, which we looked at in Chapter 2, and the Economic Order Quantity model featured in Chapter 3. In break-even analysis the revenue per unit, the fixed cost and the variable cost per unit are in each case a specified single value. In linear programming we assume that both profit per unit and resource usage are constant amounts. In the Economic Order Quantity model the order cost and the stock-holding cost per unit are each known single values. Because these types of models involve values that are fixed or predetermined they are called deterministic models.
Page Count:
28
Publication Date:
2017-02-03
ISBN-10:
1542898889
ISBN-13:
9781542898881
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