Martin,a Sales Representative for a Computer Firm,receives the Latest Performance

question 25

Multiple Choice

Martin,a sales representative for a computer firm,receives the latest performance report on the main product he sells. Unfortunately,Martin's product performs slightly behind that of the closest competitor,and Martin is afraid that this information will cause him to lose customers. The research and development team has made some major improvements in the product,but the next performance report is not due out for another six months. What should Martin most likely do to prevent the loss of customers?

• A)He should pretend that the recent performance report has not come out and tell his customers that he doesn't know when it will be out.
• B)He should change the numbers on the performance report to indicate that his product performs better than the competition's product.
• C)He should avoid direct contact with his customers until the next performance report comes out.
• D)He should expose the performance report but explain to customers that the product has been improved and new data will be available in six months.
• E)He should change the numbers for the competitor so it looks as if the two companies' products perform equally.

Distinguish between different types of waiting line models and their applications.

Apply statistical distributions (e.g., exponential distribution) to model arrival and service processes.

Understand key inventory management concepts, like reorder points and lot sizing.

Analyze the impact of queue capacities on system throughput and customer wait times.

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Definitions:

Annual Profit

The total revenue of a business minus total expenses over the course of a year, indicating the financial performance and health of the business.

Demand Patterns

Observable trends or behaviors in customer demand over time, influencing inventory management and production planning.

Payoff Table

A decision-making tool used in business and economics to display the outcomes (or payoffs) of different strategies or decisions under various states of nature.

Expected Value Criterion

Represents a decision-making approach that utilizes the weighted average of all possible outcomes, considering the probabilities of each outcome to assess the best decision under uncertainty.