Scenario 9.3 Tom Bergman,owner and Operator of the Earplug Superstore,is Reviewing the Reviewing

question 207

Multiple Choice

Scenario 9.3
Tom Bergman,owner and operator of the Earplug Superstore,is reviewing the costs associated with the store's best-selling hearing aid,the BZ15.The data available to Mr.Bergman concerning this device follow.
Demand = 25 units/week
Order cost = $3/order
Holding cos = $1.50/unit/year
The Earplug Superstore operates 52 weeks a year.
-Use the information in Scenario 9.3.If Tom decides to order at the economic order quantity,what is the sum of the annual ordering cost and holding cost?

• A)less than or equal to $90
• B)greater than $90 but less than or equal to $100
• C)greater than $100 but less than or equal to $115
• D)greater than $115

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Definitions:

Creativity

The ability to produce original and valuable ideas or solutions to problems.

Escalating Commitments

The phenomenon where individuals or organizations continue to invest time, money, or resources into a failing course of action due to the amount already invested.

Setting Limits

Establishing and enforcing rules or boundaries that govern acceptable behavior and actions.

Involvement

The degree of interest and personal relevance a person finds in a particular situation or activity.