In the Year That a Bakery Buys a New $100,000

question 81

Multiple Choice

In the year that a bakery buys a new $100,000 oven by borrowing at a real interest rate of 5 percent,the oven adds $22,000 to bread sales,depreciates by $8000,and requires $3000 in natural gas and maintenance.Since the MPK is ________ the user cost of capital,the bakery should ________.

• A)above,shut down the oven
• B)above,consider buying more ovens
• C)below,shut down the oven
• D)below,consider buying more ovens

Recognize and explain the bullwhip effect and its impacts on the supply chain.

Identify and describe the components of supply chain management (SCM).

Distinguish between push (make-to-stock) and pull (make-to-order) models in SCM.

Understand the role of logistics in SCM and how it relates to various SCM components.

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Definitions:

Reticular Formation

Midbrain area in which nuclei and fiber pathways are mixed, producing a netlike appearance; associated with sleep–wake behavior and behavioral arousal; also called the reticular activating system (RAS).

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, and inhibition of nearly all voluntary muscles.

Orienting Responses

The instinctive redirection of attention toward a new or important stimulus, often involving physical positioning toward the stimulus.

Superior and Inferior Colliculi

Paired structures in the midbrain involved in visual and auditory reflexes; the superior colliculi in processing visual information and inferior colliculi in processing auditory information.