Scenario 12.2 Use the Following to Answer the Questions

question 58

Multiple Choice

Scenario 12.2
Use the following to answer the questions.
Jonathan Moore,president of Polar Manufacturing Company,has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve.He specifically feels they could do a better job in managing Polar's product mix.Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures.The group decides that they need to eliminate the complete industrial product line of ice chests,and plan to do so by letting the product decline without any changes in the marketing strategy or product.The group also decides to delete Polar's line of personal thermal underwear,however this product is to be discontinued within the week due to its unprofitability.While discussing these strategies,the group has also uncovered several customer groups for which new products could be developed.The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development.
-Refer to Scenario 12.2.The decision to delete the industrial product line of ice chests is an example of deleting a product through a(n) ____,while the decision to drop the thermal underwear line is an example of a(n) ____.

• A)run-out;phase out
• B)phase-out;immediate drop
• C)immediate drop;run-out
• D)immediate drop;phase-out
• E)phase-out;run-out

Grasp the economic order quantity (EOQ) model and its relevance in inventory management.

Comprehend the effects of changes in credit policy on sales, receivables, and profitability.

Recognize the role and impact of collection policies on a firm's financial health.

Understand the significance of inventory management in operations and its effect on a firm's financial performance.

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Definitions:

Deception

The act of misleading or deceiving someone by presenting false information or concealing the truth.

Therapy

A treatment intended to relieve or heal a disorder, often involving psychological techniques for mental health issues.

Bayesian Statistics

Statistics that involve a formula for calculating the likelihood of a hypothesis being true and meaningful, taking into account relevant prior knowledge.

Mathematical Statistics

A branch of mathematics dealing with the analysis, interpretation, presentation, and organization of data using statistical theories and methodologies.