Question: By developing both the Baseline and Prime Shipping Models, the manager has concerns regarding the inputs that you used. First, certain input parameters aren't likely
By developing both the Baseline and Prime Shipping Models, the manager has concerns regarding the inputs that you used. First, certain input parameters aren't likely to change if the company were to use Prime. For example, the average selling price. However, there are other model inputs that are likely to be different. For example, product demand. Determine which model inputs are likely to remain the same whether Prime is adopted or not and which model inputs are likely to change.
-For all of the inputs in the model, how do changes in each input impact profitability?
-Is the input a global variable or a local variable? Why?
-Discuss how and why each of these inputs is likely to change and examine how sensitive the model is to changes to the inputs.
-Which of these inputs are critical to the profitability of the business?



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