Oie 544, Hw4

OIE544 ------------------------------------------------- HW #4 (25 pts; Due by Dec. 06) Problem 1 (10 point): This knead is designed to help you record various forms of supply dilutes. The spreadsheet hug contains all the lengthy calculations. You ar expected to know how to come session the worksheets to determine the stupefy parameters by complete the undermenti geniusd hellion exercises: * Buy-back Contract (1) Change the buy-back set and adjoin how the retailers society of magnitude finish volition change by completing the following table. Do you grab any track? shaping machines Buy-back Price| retail merchants Optimal shape standard| Retailers Optimal expect scratch| Manufacturers Expected Profit| $45| 14000| 497200| 488500| $50| 14000| 505500| 480200| $55| 14000| 513800| 471900| $60| 14000| 522100| 463600| $65| 16000| 534000| 480500| The profit would diminution as the buy-back determine emergences when the company cadence is fixed, and the quantity would increase until limit one when buy-back toll increase to some levels.

(2) Suppose you are the manufacturer (seller), and you would like to possess the purchaser by victimisation this contract to purchase the upper limit quantity; that is, 18,000 units. What would be the buy-back price you should chap to the buyer? Would this decision agnise sense? When the buy-back price is to a greater finish than or equal to $75, the buyer would purchase 18,000 units because the buyer could acquire the largest profit in 18,000 units compared with some other quantities. This decision doesnt obligate sense, because the manufacture should focus on the profit, and his goal is to maximize the profit. From the bm analyzed above, the profit would decrease as the buy-back price increases when the order quantity is fixed, so to build the buyer to purchase the maximum quantity, the manufacture would only earn no more than 440,500, which is authentic when the...If you want to get a full essay, order it on our website: Ordercustompaper.com

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