Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer both Felix has worked hard to get his factories' lead time to 5 days; he has calculated future demand and has accounted for

please answer both image text in transcribed
Felix has worked hard to get his factories' lead time to 5 days; he has calculated future demand and has accounted for variations in demand. As such, he knows that he will always have a lead time of 5 days. He wants to make more money so he wants to switch to contract 2, assuming he makes NO changes besides which contract he chooses what should he do and why? Stay with contract 1 , his lead time is longer than the maximum quoted lead time for contract 2 so he would make NO money. Stay with contract 1 , it's working now so he shouldn't try to change anything about his factory for the rest of the game Switch to contract 2 , contract 2 has a lower lead time so he may even be able to sell machines Switch to contract 2 , he can earn more per job Question 5 1 pts Samantha is considering switching from contract 2 to contract 3 , which of the following is a valid reason to switch? Contract 3 pays more than contract 2 with the same required lead times, so if she is already running contract 2 successfully she can make more by switching. Demand on contract 3 is roughly 50% higher so if her factory can handle the extra demand she can make more money. Contract 3 pays more than contract 2 but has a smaller allowed lead time. Thus if she is able to improve her throughput times she can make more on contract 3. There is never a reason for Samantha to switch to contract 3 , they pay the same but contract 3 has a shorter lead time so there is never a reason to switch

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

The Supply Chain Playbook

Authors: Horacio Sanchez Salinas

1st Edition

1546260234, 978-1546260233

More Books

Students also viewed these General Management questions