Scenario 11.2 - S&H Mercantile

question 17

Multiple Choice

Scenario 11.2 - S&H Mercantile
The S&H Mercantile in Luther is the only game in town for a number of items, and tries valiantly to use only the storage space needed to display items since there is no stock room in the back of the store. One popular item, a 16-ounce can of dehydrated water, takes up 20 square inches of shelf space. The shelf space available for this item measures five feet by four feet. The store manager would like to order a quantity that can fill the shelf space without stacking and without needing to store cans elsewhere in the store. The amount ordered should all be on display once the S&H runs out and ideally would arrive just as the last can is purchased.
-Suppose the annual demand is 8,000 units and the cost per can is $3 with a holding cost of 10%. What is the required order cost per lot?

• A) 32 cents
• B) $3.20
• C) $32
• D) $1.44

Understand the life cycle stages of entrepreneurial organizations and related management challenges.

Identify the types of start-up costs and potential investors for entrepreneurial businesses.

Describe the concept and benefits of business incubators for small businesses.

Explain intrapreneurship and how it operates within large organizations.

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Definitions:

Folklore

The traditional beliefs, customs, stories, songs, and practices of a culture, passed through generations by word of mouth.

Role Modeling

The process by which individuals influence others' behaviors, attitudes, or skills through example, particularly by embodying qualities that are admired or desired.

Organization Stories

Narratives shared within a company that convey its values, history, and culture, often shaping employee behavior and attitudes.

Rites Of Degradation

Ceremonies or rituals that aim to reduce the status of individuals within a group or society, often as a form of punishment or social ostracism.