Scenario 9.5 Tom Bergman, Owner and Operator of the Earplug Superstore, Is

question 92

Multiple Choice

Scenario 9.5
Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store's best-selling hearing aid, the BZ15. The data available to Dr. Bergman concerning this device follow.
Demand = 25 units/week
Order cost = $3/order
Holding cost = $1.50/unit/year
The Earplug Superstore operates 52 weeks a year.
-Use the information in Scenario 9.5. If Tom orders a one-year supply at a time, how much higher are his total (ordering and holding) costs compared to total costs incurred if he ordered at his EOQ?

• A) less than or equal to $600
• B) greater than $600 but less than or equal to $700
• C) greater than $700 but less than or equal to $800
• D) greater than $800

Understand reverse innovation and its impact on global product development.

Recognize the role of concept testing in evaluating new product ideas.

Learn the importance of licensing, R&D consortia, and collaborations in product development.

Understand the concept of reverse engineering and its legality and ethical considerations.

---

Definitions:

Geographical Sales Organization

An organizational structure of a sales team that assigns sales representatives to specific geographic territories or locations.

Geographical Sales Organization

A sales strategy that divides an organization's market based on geographical locations to better cater to customer needs.

Travel Time

The duration required to move from one location to another, often considered in planning and logistics.

Selling Effort

The amount of time and energy dedicated by a sales team to promote and sell a product or service.