Supply Chain Management Author: Sunil Chopra ISBN
Chapter 15 - Sourcing Decisions in a Supply Chain
1. After reviewing the last three lines of Table 15-3 in your text, as the buy-back price for each disc increases from $0 to $6 while the wholesale price is held constant at $7, what happens to profits for the music store (the retailer) and the supplier (the manufacturer)? What about overall supply chain profitability? What is the lesson to be learned from this exercise?
The information presented in Table 15-3 assumes that there are no costs associated with returning the “buy-back” products to the supplier. As the transportation costs to return the goods being bought back increases, what happens to the profitability of the supply chain?
Chapter 16 - Pricing and Revenue Management in a Supply Chain
What happens to prices and profitability when the sensitivity for customers that are willing to wait (i.e., segment 2) increases from 40p1 to 80p1? What did you learn from this exercise?
What happens to the quantity purchased and profitability if the price sensitivity increases to from 1.8p3 to 1.9p3 in the third period? What did you learn from this exercise?
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