Salem Is an Operations Manager Whose Budget of $555,000 Was

question 33

Multiple Choice

Salem is an operations manager whose budget of $555,000 was approved to buy four new machines in order to increase production by 15%.After seeing what the suppliers had to offer,he realized that the model which would best suit his company's needs was very expensive and he could only purchase three machines rather than four.He requested a budget increase and was denied.Salem decided that the three machines will serve the purpose.This is an example of ________.

• A)evaluating results
• B)bounded rationality
• C)rational decision-making
• D)classical decision model
• E)cost benefit analysis

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Definitions:

Product Attributes

Characteristics or features that define a product, including quality, size, design, and functionality.

Price Sensitive

The degree to which the demand for a product changes in response to changes in its price.

Differential Pricing

A pricing strategy in which a company sets different prices for the same product or service based on certain criteria such as customer segment, quantity purchased, or location.

Wasted Capacity

Resources or production capabilities that are underutilized or not used to their full potential, leading to inefficiencies.