Question
You work for the owner of a company that owns and manages 10,000 vending machines in upstate New York. The company that supplies the vending
You work for the owner of a company that owns and manages 10,000 vending machines in upstate New York. The company that supplies the vending machines has developed a new type of machine. It contains an algorithm that adjusts the price of the product being sold based on various environmental parameters. For example, for a Coke machine, the price of a can of Coke would adjust as follows:
Full machine - $1.50 25% full (and will run out before it can be filled) - $2.00 Temperature of 50 degrees - $1.00 Temperature of 85 degrees - $2.00 Temperature of 95 degrees - $3.00 25% full and 95 degrees - $3.50 Last 10 cans and 95 degrees - $4.00 Last 5 cans and 95 degrees - $4.50 Last can and 95 degrees - $5.00
The price changes have a five minute delay, so an individual, or group of individuals purchasing more than one can will likely not pay a different price. The supplier has provided you with an analysis that indicates the benefit/cost is much greater than one and the payback for converting over your existing machines is less than one year. He has also agreed to finance the conversion over a five year period at no interest. The owner has asked you to evaluate the new machines and recommend a course of action. His biggest concern is how these new machines will be viewed by the customer and how can the change be managed so it will be accepted by the customer? Support your answer with concepts from the textbook.
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