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Bargainmart is an international retail store. Bargainmart's managers are considering implementing a new business - to - business ( B 2 B ) information system
Bargainmart is an international retail store. Bargainmart's managers are considering implementing a new businesstobusiness BB information system for processing merchandise orders. The current system costs Bargainmart $ per month and $ per order. Bargainmart has two options, a partially automated BB and a fully automated BB system. The partially automated BB system will have a fixed cost of $ per month and a variable cost of $ per order. The fully automated BB system has a fixed cost of $ per month and a variable cost of $ per order. Based on data from the past years, Bargainmart has determined the following distribution on monthly orders:
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Read the requirements.
Requirements & Prepare a table showing the cost of each plan for each quantity of monthly orders. What is the expected cost of each plan?
Determine the monthly cost of each order level under the current plan and then compute the expected cost.
Current plan
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Prepare a table showing the cost of each plan for each quantity of monthly orders.
What is the expected cost of each plan?
In addition to the information systemf; costs, what other factors should Bargainmart consider before deciding to implement a new BB system?
tableMonthly Number of Orders,Probability orders, orders, orders,
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