Discuss why subcontractors can often offer products and services to a company more cheaply than if the company produced them themselves?
Answer to relevant QuestionsIn what industries would you tend to see dual facility types (some facilities focusing on only one type of product and others able to produce a wide variety)? In what industries would this be relatively rare? Why? Why would a firm want to offer pricing promotions in its peak-demand periods? How do trade promotions and price fluctuations affect coordination in a supply chain? What pricing and promotion policies can facilitate coordination? Discuss why supply chain profits may be hurt by a retailer making lot sizing decisions with the sole objective of minimizing its own costs. What advantage would result if the entire supply chain could coordinate this ...Explain how a reduction in lead time can help a supply chain reduce safety inventory without hurting product availability.
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