Alvero Dominguez Recently Has Been Named to Head a Major

question 156

Multiple Choice

Alvero Dominguez recently has been named to head a major manufacturing plant at Dow Chemical. The plant has had significant increases in inventory and declines in net income over the past two years. Alvero's task is to eliminate the excess inventory and return the plant to its previous level of profitability. To begin solving this problem, Alvero invites suggestions from line workers, gathers managers from various levels of the plant to brainstorm, and talks with experts in the field of operations management. This step in the managerial decision-making process is known as

• A) identifying the problem.
• B) generating alternatives.
• C) selecting an alternative.
• D) implementing a solution.
• E) performance measurement.

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Definitions:

Relatively Elastic

Describes a situation where a small change in price leads to a significant change in quantity demanded or supplied.

Marginal Revenue

The additional income received from selling one more unit of a good or service, vital for decision-making in firms.

Total Revenue

The overall amount of money received by a firm from selling its goods or services, calculated by multiplying the price by the quantity sold.

Output

The total quantity of goods or services produced by an individual, firm, or country over a specified period.