Table 5.1 Fred Jacobs, Assistant Manager of Home and Hearth, Is Reviewing

question 58

Multiple Choice

Table 5.1
Fred Jacobs, assistant manager of Home and Hearth, is reviewing the costs associated with the store's best-selling frying pan. The data available to Mr. Jacobs concerning this frying pan follow.


-Use the information in Table 5.1. Jacobs has recently learned of the economic order quantity in his business management class. If Home and Hearth implemented the EOQ, which of the following statements is TRUE?

• A) The annual order cost would increase.
• B) The annual holding cost would increase.
• C) The economic order quantity would be greater than 125 units.
• D) The annual order cost and holding cost would increase.

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Definitions:

Systematic Desensitization

A behavioral therapy technique aimed at reducing anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Operant Conditioning

A learning process in which the likelihood of a behavior is increased or decreased through reinforcement or punishment.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Exposure

A therapeutic technique where individuals confront their fears or anxieties in a controlled, gradual manner to decrease sensitivity and reactive behaviors over time.