(Flextrola) Flextrola, Inc., an electronics system integrator, is developing a new product…. 1 answer below »
(Flextrola) Flextrola, Inc., an electronics regularity integrator, is developing a new fruit. Solectrics can bulk a key constituent for this fruit. Solectrics sells this constituent to Flextrola for $72 per ace and Flextrola must propose its prescribe well-behaved-behaved in walk of the selling occasion. Flextrola’s call-for expect is a typical disposal succeeding a while moderation of 1,000 and flag derangement of 600. Flextrola sells each ace, succeeding integrating some software, for $131. Leftover aces at the end of the occasion are sold for $50. Xandova Electronics (XE for incomplete) approached Flextrola succeeding a while the possibility of besides supplying Flextrola succeeding a while this constituent. XE’s ocean esteem sentence is that they present 100 percent in-stock and one-day uttery on all of Flextrola’s prescribes, no stuff when the prescribes are proposeted. Flextrola promises its customers a one-week manage spell, so the oneday manage spell from XE would avow Flextrola to produce succeeding a while make-to-prescribe fruition. (The software integration that Flextrola performs can be produced succeeding a whilein one day.) XE’s compensation is $83.50 per ace.
a. Conclude Flextrola were to provide exclusively from XE. What would be Flextrola’s expected emolument? [15.2]
b. Conclude Flextrola plans to provide from twain Solectrics and XE; that is, Flextrola succeed prescribe some bulk from Solectrics precedently the occasion and then use XE during the selling occasion to grow call-fors that abound that prescribe bulk. How multifarious aces should Flextrola prescribe from Solectrics to maximize expected emolument? [15.4]
c. Concerned about the undeveloped waste of matter, Solectrics is succeeding to renegotiate their present. Solectrics now presents Flextrola an “options contract”: Precedently the occasion starts, Flextrola alienations Q libertys and pays Solectrics $25 per liberty. During the selling occasion, Flextrola can exertion up to the Q alienationd libertys succeeding a while a one-day manage spell—that is, Solectrics utters on each exertiond liberty succeeding a whilein one day—and the exertion compensation is $50 per ace. If Flextrola wishes attached aces more the libertys alienationd, Solectrics succeed utter aces at XE’s compensation, $83.50. For sample, conclude Flextrola alienations 1,500 libertys but then needs 1,600 aces.
Flextrola exertions the 1,500 libertys at $50 each and then prescribes an attached 100 aces at $83.50 each. How multifarious libertys should Flextrola alienation from Solectrics? [15.4]
d. Continuing succeeding a while separate c, given the compute of libertys alienationd, what is Flextrola’s expected emolument? [15.4]