When an Organization Faces Multiple Constraints for Multiple Products, What

question 110

Multiple Choice

When an organization faces multiple constraints for multiple products, what kind of quantitative analysis needs to be performed?

• A) Use the same technique as for a special order
• B) No quantitative analysis, because there is no way to use constrained resources optimally
• C) A linear programming analysis that optimizes the contribution margin per constrained resource
• D) Rank products on contribution margin and pick the product with the highest one

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Definitions:

Absolute Threshold

The minimum stimulus intensity that an organism can detect half the time.

Perception

The process by which individuals organize and interpret sensory information from their environment to understand and interact with the world around them.

Disruptive

Referring to technologies, products, or services that radically change an industry or business strategy, often displacing established systems or practices.

Subliminal Messages

Messages that are designed to pass below the normal limits of perception, often used in advertising and media to influence consumer behavior unconsciously.