Scenario 11.2 - S&H Mercantile

question 27

Multiple Choice

Scenario 11.2 - S&H Mercantile
The S&H Mercantile in Luther is the only game in town for a number of items,and tries valiantly to use only the storage space needed to display items since there is no stock room in the back of the store.One popular item,a 16-ounce can of dehydrated water,takes up 20 square inches of shelf space.The shelf space available for this item measures five feet by four feet.The store manager would like to order a quantity that can fill the shelf space without stacking and without needing to store cans elsewhere in the store.The amount ordered should all be on display once the S&H runs out and ideally would arrive just as the last can is purchased.
-Aggregating across products,retailers,or suppliers in a single order allows for

• A)an increase in lot size for individual products.
• B)an increase in customer demand.
• C)a reduction in holding cost per unit.
• D)a reduction in lot size for individual products.

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Definitions:

Representativeness Heuristic

A cognitive shortcut in which individuals judge the probability of an event based on how closely it resembles a typical case, often leading to biases in decision-making.

Stereotypes

Oversimplified generalizations about a group of people that do not take individual differences into account.

Crisis

A critical or precarious situation that requires immediate attention and action to prevent or mitigate damage or disaster.

Disaster

A sudden, catastrophic event causing significant damage, disruption, and potentially loss of life.