Table 107 -TOMBOW Is a Small Manufacturer of Pencils and Has Had

question 25

Multiple Choice

Table 10.7
$$\begin{array} { | c | c | } \hline \text { Month } & \begin{array} { c } \text { Units Sold } \\( 00 ) \end{array} \\\hline 1 & 150 \\2 & 145 \\3 & 160 \\4 & 180 \\5 & 220 \\\hline\end{array}$$
-TOMBOW is a small manufacturer of pencils and has had the following sales record for the most recent five months: Use the information in Table 10.7.The forecast for month 2 is

• A) less than or equal to 120 units.
• B) greater than 120 but less than or equal to 140 units.
• C) greater than 140 but less than or equal to 160 units.
• D) greater than 160 units.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Pull Strategy

A supply chain strategy in which customer orders drive manufacturing and distribution operations.

Transportation Management

The process of planning, executing, and optimizing the movement of goods and materials from their point of origin to their final destination.

Distribution Activities

Processes involved in making a product or service available for use or consumption by end-users or consumers through a distribution channel.