Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the simulation, your team will face late penalties when the lead time for a job exceeds the quoted lead time promised for the selected

In the simulation, your team will face late penalties when the lead time for a job exceeds the quoted lead time promised for the selected contract.
The revenue earned per job decreases linearly as the lead time exceeds the quoted lead time up to a maximum lead time where it reaches $0.
Lead times above the maximum lead time also earn $0 in revenue.
For Example, with Contract 1
A job completed in 7 days or fewer earns $800
A job completed in 14 days earns $0.
For each day over the quoted lead time the revenue decreases by ($800-$0)/(14 days -7 days)= $800/7= $114.29 per day.
A job completed in 10 days is 3 days late on Contract 1. It earns a penalty of $114.29*(3)= $342.86
The revenue earned for this job would be $800- $114.29*(10-7)= $457.14 in revenue.
Compare a job that is 0.25 days late on Contract 1 with a job that is 0.25 days late on Contract 2.
Calculate the revenue earned from a job that is 0.25 days late on Contact 1(completed in 7.25 days)
Calculate the revenue earned from a job that is 0.25 days late on Contract 2(completed in 0.75 days)
Which job earns more revenue?
Enter the absolute difference in revenue earned between these 2 jobs.
Carry your calculations to at least 3 decimal places.
Enter your final answer rounded to 1 decimal place.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

More Books

Students also viewed these General Management questions

Question

How can a service be specifi ed?

Answered: 1 week ago