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

question 66

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 at the economic order quantity, how many units does he order at a time?

• A) less than or equal to 75 units
• B) greater than 75 but less than or equal to 150 units
• C) greater than 150 but less than or equal to 250 units
• D) greater than 250 units

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Definitions:

Creative Process

The series of steps or phases involved in generating innovative ideas or solutions, often encompassing preparation, incubation, illumination, and verification.

Identifying

The process of recognizing, distinguishing, and defining elements or issues within a particular context or situation.

Political Decision Making

The process of making decisions within organizations that involves bargaining, negotiation, and power plays among stakeholders.

Stakeholders

Stakeholders are individuals or groups with an interest or concern in an organization, project, or outcome, whose influence can affect or be affected by the entity's actions.