-Refer to the Above Diagram (B),assume That D_L Represents Low

question 15

Multiple Choice

-Refer to the above diagram (b) ,assume that D_L represents low demand for the Turbo-car,D_M represents the medium level of demand and,D_H represents the high level of demand for Turbo-car and,Fancy Auto's optimal output level is 900 cars per week.If the Fancy Auto Company has a fixed price policy of $37,000 per vehicle:

• A) the quantity demanded will be 900 cars per week if the demand is D_L.
• B) the quantity demanded will be 700 cars per week if the demand is D_L.
• C) the quantity demanded will be 1150 cars per week if the demand is D_L.
• D) the quantity demanded will be 1150 cars per week if the demand is D_M.

---

Definitions:

Value Chain

A series of activities undertaken by a company to deliver a valuable product or service to the market, focusing on adding value at each step.

Manufacturing Chain

The sequence of processes involved in the production and distribution of a commodity.

Product Chain

The sequence of processes involved in the production and distribution of a product, from raw materials to the final consumer.

Just-In-Time Inventory

A supply chain management strategy aimed at reducing inventory costs by receiving goods only as they are needed in the production process.