The Manager of the Quick Stop Corner Convenience Store (Which

question 112

Multiple Choice

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs) . Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer.
If he were to order 16 cases of Stein beer at a time, what would be the length of an order cycle?

• A) .25 days
• B) 3 days
• C) 1 day
• D) 4 days
• E) 20 days

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Definitions:

Black Box

The unobservable, internal process taking place within the mind of the prospect as he or she reaches a decision whether or not to buy.

Product Advantage

The unique benefits or features that make a product superior to competing offerings in the eyes of the target market.

Individual Factors

Personal characteristics or traits that affect consumer behavior, including age, income level, education, and personal preferences.

Organizational Buying

Organizational buying refers to the decision-making process and purchase activities undertaken by formal organizations to acquire products and services for their own use or production.