Johnson Manufacturing Has Decided to Consolidate Its Warehouses and Reduce

question 29

Multiple Choice

Johnson Manufacturing has decided to consolidate its warehouses and reduce the number of locations from 12 to four.However,Johnson desires to maintain the same service level in terms of the risks of running out of stock in attempting to meet customer demand.As a result,Johnson can expect that:

• A)The time to fill customer orders will decrease.
• B)The required safety stock will increase by approximately 73 percent.
• C)The required safety stock will decline by approximately 42 percent.
• D)The required safety stock will decline by approximately 58 percent.

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Definitions:

Aptitude Testing

The process of measuring an individual's ability or potential to succeed in a particular activity or field of study.

Cognitive Functioning

The mental processes involved in perception, thinking, reasoning, and remembering, which influence how we learn, solve problems, and interact with our environment.

Readiness Tests

Assessments designed to determine an individual's preparedness for a particular task, level of education, or developmental stage.

Developmental Observation

The process of systematically watching, listening to, and recording behaviors of individuals or groups over time to understand developmental progress or changes.