The Logistics/operations Manager of a Mail Order House Purchases Two

question 64

Multiple Choice

The logistics/operations manager of a mail order house purchases two products for resale: king beds (K) and queen beds (Q) . Each king bed costs $500 and requires 100 cubic feet of storage space, and each queen bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each king bed is $300 and for each queen bed is $150.
For the purchase combination 0 king beds and 200 queen beds, which resource is slack (not fully used) ?

• A)investment money (only)
• B)storage space (only)
• C)both investment money and storage space
• D)neither investment money nor storage space
• E)cannot be determined exactly

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Definitions:

Decision-making Strategies

Approaches or plans developed to select the best among alternatives based on specific criteria, aimed at achieving the most favorable outcome.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when considering a specific topic or decision.

Congress

The national legislative body of a country, particularly in the United States, it is composed of the House of Representatives and the Senate.

Welfare

A system of support provided by the government or private organizations to ensure the basic living standards of individuals or communities.