In a revenue-sharing contract, ______.
a. the supplier and buyer share the revenue from sale of products
b. the suppliers sell components and materials to the manufacturer at a price below their marginal cost, but the suppliers also share the manufacturer’s revenue, which offsets this loss
c. the manufacturer benefits from the increased supply levels and the reduced purchase price of the supplies it purchases
d. the burden of overcapacity is borne by the buyer
d. the burden of overcapacity is borne by the buyer
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Explain downsizing and discuss the major reasons that organizations engage in it. Explain why downsizing strategies are or are not generally successful.
What will be an ideal response?
Unidyne Corporation is currently planning the production of red dye number 56 for the next four months. Production and handling costs, as well as production and storage capacity, vary from month to month. These data are given in the table below. Production and holding costs are in $1000s per batch, and production levels and storage capacities are in batches. Holding costs are based on inventory on hand at the end of the month. The number of orders for batches the sales department has received over the four-month period is also given.
Unidyne does not wish to have any inventory of the dye at the end of May. Its current inventory is two batches. Determine a production schedule for the next four months.