Consider a manufacturer and a retailer that currently work with a wholesale price contract. The wholesale price is $3 pe
Posted: Fri May 20, 2022 6:03 am
Consider a manufacturer and a retailer that currently work with
a wholesale price contract. The wholesale price is $3 per unit and
the retail price is $5 per unit. The production cost is $1 per
unit. The manufacturer now offers a revenue sharing contract such
that the retailer has to pay $1 to the manufacturer for each
product sold at the retail price of $5. Compared to the original
wholesale price contract, the new contract changes (other
parameters remain as beforeļ¼:
A. The overage cost
B. The fixed ordering cost
C. The underage cost
D. The best inventory model to use
E. None of these will be changed
a wholesale price contract. The wholesale price is $3 per unit and
the retail price is $5 per unit. The production cost is $1 per
unit. The manufacturer now offers a revenue sharing contract such
that the retailer has to pay $1 to the manufacturer for each
product sold at the retail price of $5. Compared to the original
wholesale price contract, the new contract changes (other
parameters remain as beforeļ¼:
A. The overage cost
B. The fixed ordering cost
C. The underage cost
D. The best inventory model to use
E. None of these will be changed