Select Manufacturing Sells a Variety of Office Products Including Two-Drawer

question 85

Multiple Choice

Select Manufacturing sells a variety of office products including two-drawer file cabinets. On June 30, the company had 1,200 cabinets in inventory. The company's policy is to maintain a cabinet inventory equal to 20% of next month's sales. The company expects the following sales activity for the third quarter of the year: In addition, October's sales are projected to be 10,000 cabinets. What is the total required production for the third quarter?

• A) 23,600 cabinets
• B) 24,400 cabinets
• C) 25,600 cabinets
• D) 26,800 cabinets

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Definitions:

Incentives

Have two pieces: a performance evaluation metric, like sales, profit, or investment return, and a reward scheme that rewards better performance, like a bonus, the promise of a promotion, or a commission. Performance evaluation metrics can be objective or subjective.

Supplier Power

The influence suppliers have over the market or customer base, often due to lack of competition, affecting prices, quality, and availability.

Sourcing Inputs

Involves the process of finding and obtaining the necessary resources, materials, or components required to manufacture a product or provide a service.

Value Capture

A process by which companies retain a portion of the value they create for customers, often through pricing strategies or intellectual property.