Demand for a Component Averages 80 Units Per Week, with a Weekly

question 133

Essay

Demand for a component averages 80 units per week, with a weekly standard deviation of demand of 14 units. The current supplier of this component offers a four-week lead time. Stockout risk is to be kept at 8 percent. Assume that it costs $50 to hold one unit in inventory for a year. Suppose the annual cost for the items would be $500 higher if they were purchased from another vendor, but that vendor would offer a two-week lead time. Would it be better to go with the more-expensive but more-responsive vendor?

Identify and analyze group norms.

Recognize the factors that enhance individual performance in group settings.

Understand the dynamics and consequences of groupthink.

Recognize the concept of social facilitation.

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Definitions:

Learned Associations

Connections made between certain stimuli or between behaviors and consequences, foundational to the process of learning.

Negative Reinforcement

The removal of a stimulus following a given behavior in order to increase the frequency of that behavior.

Avoidance Learning

An organism’s learning that it can altogether avoid a negative stimulus by making a particular response.

Modeling

The act of learning by observing and imitating the behaviors of others.