(TEC) Consider the relationship between TEC and O’Neill with unlimited, but expensive, reactive… 1 answer below »
(TEC) Consider the homogeneity betwixt TEC and O’Neill succeeding a while unbounded, but consumely, reactive multiplys. Recall that TEC is desirous to surrender O’Neill a midtimeliness sustentation (see Figure 15.1) but jaw O’Neill a 20 percent bribe aloft the symmetrical commercial consume of $110 for those individuals. Suppose TEC’s bloated brink is 25 percent of its selling consume for individuals executed in the original genesis run. However, TEC estimates that its genesis consume per individual for the promote genesis run (any individuals executed during the timeliness succeeding receiving O’Neill’s promote regulate) is twice as wide as individuals executed for the moderate regulate. Wetsuits executed that O’Neill does not regulate scarcity to be salvaged at the end of the timeliness. Succeeding a while O’Neill’s leave, TEC estimates it can achieve $30 per subserve by selling the extra subserves in Asian markets.
a. What is TEC’s expected benefit-service succeeding a while the oral provision (i.e., a only regulate by O’Neill polite in degree of the selling timeliness)? Recall that O’Neill’s optimal newsvendor bulk is 4,101 individuals. [15.2]
b. What is TEC’s expected benefit-service if it offers the reactive multiplys to O’Neill and TEC’s original genesis run equals O’Neill’s original genesis regulate? Assume the call-for foretaste is normally arranged succeeding a while average 3,192 and plummet gap 1,181. Recall, O’Neill’s optimal original regulate is 3,263 and O’Neill’s expected promote regulate is 437 individuals. [15.4]
c. What is TEC’s optimal original genesis bulk if its CEO authorizes its genesis director to cull a bulk that is elder than O’Neill’s original regulate? [15.4]
d. Given the regulate separated in multiply c, what is TEC’s expected benefit-service? (Warning: This is a exacting scrutiny.) [15.4]