Hudson,Inc

question 39

Multiple Choice

Hudson,Inc. ,is considering a change from a traditional purchasing system to a just-in-time purchasing system.What has probably happened to Hudson's cost per purchase order and inventory unit storage cost to prompt the company to consider such a change?

• A)Purchase-order cost is increasing and unit storage cost is increasing.
• B)Purchase-order cost is increasing and unit storage cost is decreasing.
• C)Purchase-order cost is decreasing and unit storage cost is increasing.
• D)Purchase-order cost is decreasing and unit storage cost is decreasing.
• E)Both of these costs are relatively stable in amount.

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Definitions:

Homeostasis

The ability or tendency of an organism or cell to maintain internal equilibrium by adjusting its physiological processes.

Thoracic Cavity

The part of the body located between the neck and the abdomen, housing the lungs and heart among other organs.

Esophagus

The muscular tube that conveys food from the mouth to the stomach.

Trachea

The windpipe, a vital part of the respiratory system that provides air passage from the larynx to the bronchi of the lungs.