Instead of Calling a Hundred Possible Windshield Suppliers, the Purchasing

question 83

Multiple Choice

Instead of calling a hundred possible windshield suppliers, the purchasing manager for Telsa Motor Co. decides to call three suppliers of automobile windshields for a bid on an order for 1,000 windshields for a new car. What type of decision does this represent?

• A)nonprogrammed
• B)illusion of control
• C)satisficing
• D)programmed

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Definitions:

Potential Benefits

The likely advantages or gains that may be realized from a particular action or investment.

Potential Shortcomings

Possible weaknesses or failures that could limit success or effectiveness in achieving desired outcomes or objectives.

Production Budget

A financial plan that estimates the cost of producing a product or offering a service, including direct materials, labor, and overhead.

Desired Ending Inventory

The ideal quantity of goods a company aims to have on hand at the end of an accounting period to meet customer demand without overstocking.