Use the Following to Answer the Questions Below

question 8

Multiple Choice

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

-Refer to the instruction above.The high-cost supplier has indicated that if Steele will select them as the supplier of choice,they will not charge for shipping.How does this change the decision on bicycle frame suppliers?

• A)The high-cost supplier is now the low-cost supplier,and becomes the frame supplier for Steele.
• B)The suppliers are now equal cost,and Steele can select either supplier.
• C)It doesn't change the decision-they are still the high-cost supplier.
• D)More information is required to make this decision.

---

Definitions:

Personal Choices

Decisions made by an individual based on personal preference, values, or beliefs, influencing one's life and the lives of others.

Thomas Theorem

A theory that if people define situations as real, they are real in their consequences, underlining the importance of perception in social behavior.

Wealthy Society

A society characterized by the abundance of valuable resources, financial assets, and a high standard of living among its members.

Sympathetic Introspection

Cooley’s concept of the value of putting yourself into another person’s shoes and seeing the world as he or she does.