The Operations Manager of a Mail Order House Purchases Double

question 31

Multiple Choice

The operations manager of a mail order house purchases double (D) and twin (T) beds for resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager's goal is to maximize profits.
What is the storage space constraint?

• A) 90D + 100T ≤ 18,000
• B) 100D + 90T ≥ 18,000
• C) 300D + 90T ≤ 18,000
• D) 500D + 100T ≤ 18,000
• E) 100D + 90T ≤ 18,000

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Definitions:

Hierarchy Of Effects

The sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes awareness, interest, evaluation, trial, and adoption of the product.

Communication Process

The method by which information is transmitted and received between a sender and a receiver, encompassing elements like encoding, medium of transmission, decoding, and feedback.

Feedback Loop

A process in which the outputs of a system are circled back and used as inputs, leading to adjustments and refinement of operations or products.

Word Of Mouth

An informal mode of communication among consumers sharing opinions and experiences about a product or service, often influencing purchasing decisions.