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NEED HELP TO FILL OUT EXCEP SHEET FOR CREDIT ON THIS QUESTION . Fast is a trucking company that supplies trucks to Metal. To provide
NEED HELP TO FILL OUT EXCEP SHEET FOR CREDIT ON THIS QUESTION Fast is a trucking company that supplies trucks to Metal. To provide a truck to Metal in a given period, Fast has to plan for truck availability the previous period. It costs Fast $ per truck that it plans to make available to Metal. Metal pays Fast $ per truck used. If Metal needs a truck that Fast does not have, Fast pays Metal a penalty per truck of $ Metal then rents a truck and driver for a period at a cost of $ per truck. C An executive at Metal offers Fast the following deal: Metal will guarantee Fast usage of one truck every period, ie Metal will pay Fast for one truck whether they need it or not, but in return Fast should provide service level. What would be the impact of this deal on Metals expected costs and Fasts expected profits? Should Fast accept this offer?
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