The Materials Manager for a Billiard Ball Maker Must Periodically

question 56

Multiple Choice

The materials manager for a billiard ball maker must periodically place orders for resin,one of the raw materials used in producing billiard balls.She knows that manufacturing uses resin at a rate of 50 kilograms each day,and that it costs $.04 per day to hold a kilogram of resin in inventory.She also knows that the order costs for resin are $100 per order,and that the lead time for delivery is four (4) days. Without allowing for safety stock,what reorder point should be used to reorder resin?

• A)0 kilograms remaining
• B)50 kilograms remaining
• C)200 kilograms remaining
• D)400 kilograms remaining
• E)500 kilograms remaining

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Definitions:

Job Enrichment

The process of making a job more rewarding, challenging, and interesting by adding more meaningful tasks to enhance employee satisfaction and performance.

Diffusion

The process by which an innovation is communicated through certain channels over time among the members of a social system.

Creativity

The ability to produce original and valuable ideas or solutions by thinking outside conventional boundaries or patterns.

Motivation

The processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal.