Matthew Richter has recently upgraded his smartphone and is now looking to upgrade his data plan. Flat

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Matthew Richter has recently upgraded his smartphone and is now looking to upgrade his data plan. Flat rates are shown in the table below. Amounts over the maximum allowable gigabytes (GB) for each plan are charged $15 per GB, fractional amounts included. Matthew is uncertain how many GB he might use because of the new phone€™s additional features, but his best bet is 10 GB, which doesn€™t align directly with any plan.

BASE PRICE MAX # OF GB PLAN 5 5 $60 A B $85 $140 12 D $150 15


a. If Matthew uses 10 GB of data, which plan should he choose?

b. At what level of usage should Matthew upgrade from Plan B to Plan C?

c. At what level of usage should Matthew upgrade from Plan C to Plan D?

d. Summarize the decision rules for when Matthew should choose each plan.

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Operations and Supply Chain Management

ISBN: 978-1119444404

9th edition

Authors: Roberta S. Russell, Bernard W. Taylor

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