Question: 1. Which option delivers the maximum profit for the supply chain: Sandras plan, Bills plan, or no promotion at all? 2. How does the answer

1. Which option delivers the maximum profit for the supply chain: Sandra’s plan, Bill’s plan, or no promotion at all?

2. How does the answer change if a discount of $10 must be given to reach the same level of impact that the $5 discount received?

3. Suppose Sandra’s fears about increasing outsourcing costs come to fruition and the cost rises to $22/unit for subcontracting. Does this change the decision when the discount is $5?

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1 Computation of the following The bottomline results for the 3 plans are Bills plan 49380240 Sandras plan 48972440 No Promotion 47664204 Somewhat different results can be get hold of if all choice va... View full answer

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