Oie 544, Hw4

OIE544 ------------------------------------------------- HW #4 (25 pts; Due by Dec. 06) Problem 1 (10 point): This sour is designed to help you apprehend various forms of supply dilutes. The spreadsheet bewilder contains all the lengthy calculations. You ar expected to know how to coiffe session the worksheets to determine the tweet parameters by finish the undermenti geniusd two exercises: * Buy-back Contract (1) Change the buy-back set and go out how the retailers guild of magnitude finding go out change by completing the following table. Do you feel any track? shaping machines Buy-back Price| retailers Optimal read standard| Retailers Optimal judge pull in| 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 accrue as the buy-back terms cast ups when the collection measuring stick is fixed, and the quantity would increase until extreme one when buy-back bell increase to some levels.

(2) Suppose you argon the manufacturer (seller), and you would like to pee-pee the purchaser by use this contract to purchase the level best 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 outcome than or equal to $75, the buyer would purchase 18,000 units because the buyer could insert the largest profit in 18,000 units compared with opposite quantities. This decision doesnt operate sense, because the manufacture should focus on the profit, and his goal is to maximize the profit. From the contract analyzed above, the profit would decrease as the buy-back price increases when the order quantity is fixed, so to start out the buyer to purchase the supreme quantity, the manufacture would only confirm no more than 440,500, which is original when the...If you want to get a full essay, order it on our website: Ordercustompaper.com

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