Small changes in consumer demand can result in large variations in orders placed because of the Bullwhip Effect. Thus the correct answer is D.
<h3>What is a consumer?</h3>
The consumer is referred as an end user of any product or service. He is the person who utilizes or takes the benefit of the products purchased. The person who buys a product is called a customer.
Demand estimations result in ineffective supply chains due to the bullwhip effect which is a characteristic of distribution channels. As one moves higher up the supply chain, it informs of increasing inventory variations in reaction to variations in consumer demand.
Therefore, option D Bullwhip effect is appropriate.
Learn more about the Bullwhip effect, here:
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The complete question is attached below-
Small changes in consumer demand can result in large variations in orders placed because of the:
A) Supply chain
B) Safety stock requirement
C) Lead time effect
D) Bullwhip effect
E) FCFS scheduling
Answer:
a. If Mel decides to sell dinners, what are the total costs for both making and buying the cookies?
if Mel decides to sell dinners, the he will not have any spare capacity for producing cookies, so the production costs would be different:
direct materials $0.20
direct labor $0.15
total overhead (including variable and fixed) $0.45
total cost per cookie = $0.80
Purchase price form external supplier = $0.60 per cookie (same as before).
b. Should Mel continue to buy the cookies? Yes No
It would be better for Mel to simply buy the cookies from an external supplier at $0.60.
Mel should only produce the cookies if he decides not to sell dinners.
Answer: Option D $97,282 is correct
Explanation:
Materials Conversion
Units completed and transferred 12200 12200
Ending work in process 4900 2940 =4900*60%
Equivalent units 17100 15140
Materials Conversion Total
Equivalent units 17100 15140
X Cost per Equivalent unit 5.00 4.00
Total costs 85500 60560 146060
Total costs 146060
Less: Cost of beginning work in process 48778 =24012+24766
Cost of units started into production 97282
Answer:
Marginal revenue is less than the price of the product
Explanation:
An organization or firm's labor demand curve is simply known to be the downward-sloping part of its marginal revenue product of labor curve.A profit-max monopolist will produce the same level of output at which marginal revenue is equal to marginal cost. . It always faces a downward sloping demand curve.
Monopoly is simply known as a market structure where there is a single seller producing a unique product.
If the demand curve for a single price monopolist always is a downward sloping straight line, then marginal revenue will be a straight line with a negative slope of twice the demand curve slope. If the monopolist's marginal revenue is greater than its marginal cost, the monopolist may increase profit by selling more units at a lower price per unit.
