Question
You can offer your customers three different pricing contracts: Contract 1: Price $750, quoted lead time = 7days; maximum lead time = 14 days
You can offer your customers three different pricing contracts: Contract 1: Price $750, quoted lead time = 7days; maximum lead time = 14 days Contract 2: Price $1,000, quoted lead time = 1days; maximum lead time = 3 days Contract 3: Price $1,250, quoted lead time = 0.5 days; maximum lead time = 1 day If you give a customer Contract 3 and on Day 100 your actual delivery times for 3 orders is 0.45 days, 0.75 days and 1.1 days, the average revenue you will receive from completing these three jobs is:
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