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QUESTION 4 Which option should this operations manager choose? Scenario A Origin

ID: 1155230 • Letter: Q

Question

QUESTION 4 Which option should this operations manager choose? Scenario A Original Current State of Affairs Scenario B Hire a Salesperson Hire a Buyer With a Sales person, focus on increasing sales by 12% Do nothing With a Buyer, focus on reducing material costs by 4% It is estimated that this business will earn a 7% profit It is estimated that this business will earn a 10.8% profit It is estimated that this business will earn an 8% profit o Scenario A-hire a buyer Scenario B-hire a sales person Do nothing There is not enough information to make a decision.

Explanation / Answer

Out of the three scenarios, scenario A gives the greatest return i.e 10.8%. Hence, the operations manager will choose option (A) i.e hire a buyer.

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