Due to Unprecedented Growth During the Year, Flowers by Kelly

question 108

Essay

Due to unprecedented growth during the year, Flowers by Kelly decided to use some of its surplus cash to increase the size of several inventory order quantities that had been previously determined using an EOQ model.
Required:
Identify whether increasing the size of inventory orders will increase, decrease, or have no effect on each of the following items.
________a.Average inventory
________b.Cost of goods sold
________c.Number of orders per year
________d.Total annual carrying costs
________e.Total annual carrying and ordering costs
________f.Total annual ordering costs

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Definitions:

LMX Theory

Leadership theory that emphasizes the relationships between leaders and individual members, focusing on the dynamics of trust and respect.

High-Quality Exchanges

Interactions between leaders and followers that are characterized by mutual trust, respect, and obligation, leading to enhanced performance.

Out-Group Members

Individuals who are not part of a specific group or community, often perceived as not fitting in or differing from the group's norms or values.

In-Group Members

Individuals within a group who share a strong identity and often receive more support and rewards from the leader.