A Company Keeps 15 Days of Materials Inventory on Hand

question 128

Multiple Choice

A company keeps 15 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average £5,000 per day. A competitor keeps 12 days of inventory on hand, and the competitor's carrying costs average £3,000 per day. The value-added costs are

• A) £5,000.
• B) £-0-.
• C) £30,000.
• D) £75,000.

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Definitions:

Fixed-ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses, often used in behavior analysis.

Biological Predisposed

An inherent inclination or natural tendency for individuals to exhibit certain behaviors or characteristics due to genetic factors.

Aversive Events

Incidents or stimuli that are unpleasant or noxious, leading to avoidance behavior.

Fixed-interval

Refers to a schedule of reinforcement where a response is rewarded only after a specified amount of time has elapsed.