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PROBLEM 10.7DQ

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Operations And Supply Chain Management
Found in: Page 253
Operations And Supply Chain Management

Operations And Supply Chain Management

Book edition 14th
Author(s) F. Robert Jacobs
Pages 800 pages
ISBN 9780078024023

Short Answer

Question: Which assumptions are necessary to employ the formulas given for Model 1?

Answer

Model 1 is valuable for a specific circumstance where a single line of clients arrives agreeing to Poisson dissemination.

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Step by Step Solution

Necessary assumption to employ

Model assumptions denote the large collection of obviously stated (or implicit premised) conventions, choices, and other specifications on which any risk model is based. The rightness of those expectations is a major factor behind the model risk linked with a given model.

Necessary to use the formulas given for Model 1

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