Management is willing to tolerate one stockout every 2 years for a specific item. If 10 orders are
placed for the item each year the service level desired is:
A) 80%.
B) 90%.
C) 85%.
D) 95%.
E) none of the above
D
You might also like to view...
The Elastic Firm has two products coming on the market, Zigs and Zags. To make a Zig, the firm needs 10 units of product A and 15 units of product B. To make a Zag, they need 20 units of product A and 15 units of product B
There are only 2,000 units of product A and 3,000 units of product B available to the firm. The profit on a Zig is $4 and on a Zag it is $6. Management objectives in order of their priority are: 1. Produce at least 40 Zags. 2. Achieve a target profit of at least $750. 3 . Use all of the product A available. 4. Use all of the product B available. 5. Avoid the requirement for more product A. Formulate this as a goal programming problem.
All of the following were mentioned in the text as means by which the manager of a firm may increase his or her compensation (on a self-serving basis) EXCEPT:
a. having the firm purchase his-her principal private residence. b. excessive consumption of perquisites. c. manipulation of earnings and dividends. d. maximizing the size of the firm, rather than its value.