Return to the bicycle manufacturer NatBike in Exercise 6. Now assume that a customized bicycle costs $300

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Return to the bicycle manufacturer NatBike in Exercise 6.

Now assume that a customized bicycle costs $300 to manufacture, whereas a standardized bicycle costs $200 to manufacture, with all other data as in Exercise 6.

What price should NatBike charge each segment if there is no capacity constraint?

What price should NatBike charge each segment if the total available capacity is 20,000 bicycles? What is the total profit in each case?

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Supply Chain Management

ISBN: 9780132743952

5th Edition

Authors: Sunil Chopra , Peter Meindl

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