A Consultant Interviews the Hiring Manager of a Small, Profit-Maximizing

question 81

Multiple Choice

A consultant interviews the hiring manager of a small, profit-maximizing firm. The manager explains that the firm used to have 15 employees, but the most-recently-hired employee has just left the company. The firm is currently advertising to hire a worker to replace the employee who just left at the same wage rate. We can infer that

• A)for the 15th employee, the wage exceeded the value of the marginal product of labor.
• B)for the 15th employee, the value of the marginal product of labor exceeded the wage.
• C)the firm is too large and should remain at 14 employees.
• D)the firm is no longer attempting to maximize profits.

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Definitions:

Phantom Demand

A phenomenon where perceived demand for a product exceeds the actual demand, often due to forecasting errors or miscommunication within the supply chain.

Supply Planning

The process of determining how best to meet future supply needs, taking into account production capacities, material availability, and demand forecasts.

Collaborative Planning

A strategy where multiple stakeholders work together in the planning process to improve supply chain efficiency and meet shared goals.

CPFR

Collaborative Planning, Forecasting, and Replenishment, a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demands.