Keep-It-Cool Products Inc How Many Coolers Should Be Produced in August?
A) 37

question 84

Multiple Choice

Keep-it-Cool Products Inc.manufactures a medium-sized drink cooler.At 30 June,the company had 5000 coolers in inventory.The company's policy is to maintain a cooler inventory equal to 15 per cent of next month's sales.The company expects the following sales activity for the third quarter of the year:
$\begin{array}{ll}\text { July } & 50000 \text { coolers } \\\text { August } & 40000 \text { coolers } \\\text { September } & 25000 \text { coolers }\end{array}$

How many coolers should be produced in August?

• A) 37 750 coolers
• B) 36 250 coolers
• C) 42 250 coolers
• D) 43 750 coolers

---

Definitions:

Hierarchy of Authority

A system within organizations where power and responsibilities are graded from the top (most authority) to the bottom (least authority).

Centralization

The process or practice of concentrating authority and decision-making in a central location or group within an organization.

Shared Decision-making

A collaborative approach where all members contribute to the decision process.

Decentralized

Pertains to the distribution of functions, powers, people, or things away from a central location or authority, often to achieve a more distributed and participative decision-making process.