What type of inventory model is best for a one-time purchasing decision?

The single-period inventory model is the most suitable for a one-time purchasing decision because it is specifically designed to handle situations where inventory is ordered only once for a limited selling period. This model is commonly applied in scenarios such as perishable goods or seasonal items, where the inventory must be accounted for against uncertain demand during a single timeframe.

In this model, the focus is on balancing the costs of overstocking (excess inventory that cannot be sold) against the costs of understocking (lost sales opportunities). The optimal order quantity can be derived from analyzing the expected demand, the cost of carrying inventory, and the potential loss from unsold items.

Other inventory models, like the continuous review model, periodic review model, and multi-period inventory model, involve repeated ordering or the continuous assessment of inventory levels, making them less suitable for situations focused on a single purchase decision. These models cater to different needs such as ongoing demand, regular monitoring, or long-term inventory management, which do not align with the one-time purchasing context specific to the single-period model.