1. What do you think of the discounting scheme that KAR had used historically? Do you think...
Question:
1. What do you think of the discounting scheme that KAR had used historically? Do you think it was justified given the circumstances?
2. Once KAR has reduced its fixed cost per order to 400 real, what are the downsides to leaving the discounting scheme unchanged?
3. What should Carlos suggest to Vanessa at the upcoming meeting? What are the potential gains for KAR from this suggestion?
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Step by Step Answer:
1 The analysis is available on spreadsheet Chapter 11KAR When fixed order costs at KAR were 4000 the analysis is provided in worksheet KAR We have the following data historically For Customer Supermar...View the full answer
Answered By
Jehal Shah
I believe everyone should try to be strong at logic and have good reading habit. Because If you possess these two skills, no matter what difficult situation is, you will definitely find a perfect solution out of it. While logical ability gives you to understand complex problems and concepts quite easily, reading habit gives you an open mind and holistic approach to see much bigger picture.
So guys, I always try to explain any concept keeping these two points in my mind. So that you will never forget any more importantly get bored.
Last but not the least, I am finance enthusiast. Big fan of Warren buffet for long term focus investing approach. On the same side derivatives is the segment I possess expertise.
If you have any finacne related doubt, do reach me out.
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Related Book For 
Supply Chain Management Strategy, Planning and Operation
ISBN: 978-0134731889
7th Edition
Authors: Sunil Chopra
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