Birdd Company Uses 450 Units of a Part Each Year

question 16

Essay

Birdd Company uses 450 units of a part each year.The cost of placing one order is $10; the cost of carrying one unit in inventory for a year is $2.Birdd currently orders 90 units at a time.

---

Definitions:

Autonomic Arousal

The activation of the autonomic nervous system, which regulates involuntary body functions and is often associated with stress or excitement.

James-Lange Theory

A hypothesis suggesting that emotions are the result of physiological responses to external stimuli followed by identification of the emotion based on the physical response.

Cannon-Bard Theory

A theory of emotion that suggests emotional feelings and physiological reactions to stimuli are experienced simultaneously.

Schachter Two-factor Theories

A psychological perspective that emotional experience arises from physiological arousal and cognitive labeling of the reason for this arousal.