2. Unipart, a manufacturer of auto parts, is considering two B2B marketplaces to purchase its MRO supplies. Both marketplaces offer a full line of supplies at very similar prices for products and shipping. Both provide similar service levels and lead times. However, their fee structures are quite different. The first marketplace, Parts4u.com, sells all of its products with a 5 percent commission tacked on top of the price of the product (not including shipping). AllMRO.com's pricing is based on a subscription fee of $10 million that must be paid up front for a two-year period and a commission of 1 percent on each transaction's product price. Unipart spends about $150 million on MRO supplies each year, although this varies with their utilization. Next year will likely be a strong year, in which high utilization will keep MRO spending at $150 million. However, there is a 25 percent chance that spending will drop by 10 percent. The second year, there is a 50 percent chance that the spending level will stay where it was in the first year and a 50 percent chance that it will drop by another 10 percent. Unipart uses a discount rate of 20 percent. Assume all costs are incurred at the beginning of each year (so Year 1 costs are incurred now and Year 2 costs are incurred in a year). From which B2B marketplace should Unipart buy its parts

Chapter 6, Question 2:

In Year 2, how many branches does the decision tree have? Group of answer choices

1

4

2

3 Flag question: Question 2 Chapter 6, Question 2:

In year 1, how many branches does the decision tree have? Group of answer choices

3

1

2

4 Question 3 Chapter 6, Question 2:

In year 1, what are the probabilities on the branches? Group of answer choices

60%, 20%, 20%

100%

50%, 50%, 50%, 50%

75%, 25% Question 4 Chapter 6, Question 2:

In year 2, what are the probabilities on the branches? Group of answer choices

60%, 20%, 20%

75%, 25%

100%

50%, 50%, 50%, 50% Question 5 Chapter 6, Question 2:

In year 2, what are the spendings on the nodes? Group of answer choices

$150 million, $135 million, $135 million, $121 million

$150 million, $135 million, $135 million

$150 million, $135 million

$150 million Question 6 Chapter 6, Question 2:

In year 1, what are the spendings on the nodes? Group of answer choices

$150 million

$150 million, $135 million, $135 million

$150 million, $135 million

$150 million, $135 million, $135 million, $121 million Question 7 Chapter 6, Question 2:

what is the expected value in the parts4u.com market, when the calculations of the decision tree are done? Group of answer choices

$11,917,969

$12,917,969

$13,917,969

$10,917,969 Question 8 Chapter 6, Question 2:

what is the expected value in the AIIMRO.com market, when the calculations of the decision tree are done? Group of answer choices

$13,516,927

$10,516,927

$11,516,927

$12,516,927 Question 9 Chapter 6, Question 2:

Which market should be chosen by Unipart? Group of answer choices

AIIMRO.com because it is cheaper

AIIMRO.com because they can make more profit

parts4u.com because it is cheaper

parts4u.com because the can make more profit Question 10 Chapter 14, Discussion Question 1:

Group of answer choices

All of the above

Water

Air

Truck Question 11 Chapter 14, Discussion Question 2:

Group of answer choices

capacity will exceed demand for the resources leading to long delays

demand for the resources will exceed capacity leading to long delays

capacity will exceed demand for the resources leading to short delays

demand for the resources will exceed capacity leading to short delays