Scenario 9.10 the Dolly Llama Farm Keeps an Average of 50 of 50

question 43

Multiple Choice

Scenario 9.10
The Dolly Llama Farm keeps an average of 50 of those funny creatures on hand and each consumes a pound of grain a day, 365 days per year. Grain costs $12 for a 50 pound bag and it costs the farm $10 to make a run to the feed store to pick up an order, regardless of order size. It takes the feed store four days to acquire, mix, and bag the special blend of grains necessary to make the feed the Dolly Llama Farm prefers. Storage costs for the feed runs 15% of the unit cost as the cost of money, loss due to critters, and spoilage all add up.
-Refer to Scenario 9.10. What should the reorder point be if demand and lead time are invariant and the farm desires a 90% service level?

• A) two bags
• B) four bags
• C) six bags
• D) eight bags

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Definitions:

Identify Mutual Problems

The process of recognizing issues that affect multiple parties and require collaborative efforts to solve.

Win-Win Negotiating Attitude

An approach to negotiation aiming for agreements that are beneficial to all parties involved, ensuring mutual satisfaction and positive outcomes.

Negotiators

Individuals or parties that engage in discussions aimed at reaching an agreement.

Japan

A country in East Asia known for its rich culture, technological advancements, and historical significance.