What are the assumptions of rational decision making?
What will be an ideal response?
The assumptions of rational decision making are as follows:
? The problem is clear and unambiguous.
? There is a single, well-defined goal that all parties agree to.
? Full information is available.
? All the alternatives and their consequences are known.
? The decision preferences are clear.
? The decision preferences are constant and stable over time.
? There is no time and cost constraints affecting the decision.
? The decision solution will maximize the economic payoff.
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A) By how much can the amount of space decrease before there is a change in the profit?
b) By how much can the amount of space decrease before there is a change in the product mix? c) By how much can the amount of time available to set up the display can increase before the solution (product mix) would change? d) What is the lowest value for the amount of time available to set up the display increase before the solution (product mix) would change?
A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The EOQ model is appropriate
The cost-minimizing solution for this product will cost ________ per year in total annual inventory (holding and setup) costs. A) $400 B) $800 C) $1200 D) Zero; this is a class C item. E) Cannot be determined because the unit price is not known.