Answer to Question #313093 in Microeconomics for Nasima

Question

University authority has assigned you to build a model to analyze the total number of books that the

students of university want to buy from the university Bookshop. Discuss how vou are going to build a model in this

case. Discuss how we can use and apply the model you have just built.

Answer 1

I am going to use the model to identify the type of books bought by students. This will facilitate easy monitoring of the inventory hence timely replenishment. Easy identification of stock out and re-order levels.