An Automobile Firm Buys Exhaust Pipes from a Certain Supplier

question 13

Multiple Choice

An automobile firm buys exhaust pipes from a certain supplier in the city.The firm finds that the pipes are reliable and in accordance with its specifications.The firm places a repeat order for the exhaust pipes with the same supplier.This is an example of a:

• A)modified rebuy.
• B)specific buy.
• C)straight rebuy.
• D)new buy.
• E)discount rebuy.

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Definitions:

Total Demand

The complete quantity of a product or service that consumers are willing and able to purchase at a given price over a specific period.

Total Supply

The entire quantity of a particular good or product that is available for purchase or distribution at a given time.

Stepping-stone Method

A linear programming method used to find the most efficient way to move products from sources to destinations such that the total transportation cost is minimized.

Northwest-corner

A method used in solving transportation or allocation problems in operations research by starting with the northwest corner of a cost matrix and moving through the matrix to optimize costs or resources.