Consider a Business That Can Be Run Using a Make-To-Stock

question 58

Multiple Choice

Consider a business that can be run using a make-to-stock or make-to-order process. Further suppose that your demand is 10,000 per month and is spread out during the month. Capacity of both processes is 15,000 per month. Based only on this information, what would be the best choice?

• A) Choose make-to-stock process.
• B) Choose make-to-order process.
• C) Install an assembly line.
• D) Raise prices in order to increase demand.
• E) None of these choices are correct.

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Definitions:

Emotion Precedes Cognition

The theory or observation that emotional responses can occur independently and prior to cognitive processing of a stimulus or situation.

Spillover Effect

refers to the phenomenon where an occurrence in one domain of life affects another, for example, stress from work impacting family life.

Arousal Associated

Related to a condition of heightened physiological and psychological activity or alertness.

Emotional State

Encompasses a person's current feelings and mood, which can affect perception, decision-making, and behavior.