The Sandoval Company Has Four Process Engineers That Are Each

question 52

Multiple Choice

The Sandoval Company has four process engineers that are each able to process 1,500 design changes. Last year 5,250 design changes were produced by the four engineers. Each engineer is paid $60,000 per year. Calculate the activity rate per change order.

• A)$4 per change order
• B)$10 per change order
• C)$40 per change order
• D)$15 per change order

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Definitions:

Just-In-Time

An inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.

Immediate Response System

A technology or service designed to provide instant feedback or reaction to input or inquiries, commonly used in customer service and educational settings.

Total Logistics Cost

The overall expenses associated with the logistics functions of a company, including transportation, warehousing, inventory management, order processing, and administration.

Stockouts

A situation in retail or inventory management when a product is not available for sale or supply.