A Regional Manager for a Chain of Auto Parts Stores

question 155

Multiple Choice

A regional manager for a chain of auto parts stores visits one of the stores in the chain.He looks in the store's warehouse and finds about 100 cases of motor oil that have been sitting in the warehouse for over one year.Upon inspection,he finds that in each case,one of the twelve cans of oil has leaked,thus soaking through the box and making the case unfit for sale.The regional manager instructs the store manager to unpack all of the cases,discard the leaking cans,clean up the remaining cans,and to contact the oil company for new boxes.He tells the store manager to repackage the remaining cans in the new boxes and to sell the cases to customers at the retailer's cost with no added markup.He explains to the store manager that moving this inventory will not result in immediate profit,but that it will benefit the store by improving the ______.

• A) markup
• B) markup rate
• C) markup percent
• D) stockturn rate
• E) break-even point

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Definitions:

Lethality

The capacity of something to be deadly or to cause death.

Ideation

The process of forming ideas, concepts, or images in the mind.

Protective Factors

Elements of a person's environment or characteristics of a person that help to reduce the risk of negative outcomes or enhance positive outcomes.

Dry Run

A rehearsal or practice session undertaken before an actual event, to test processes or operations.