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Two developments result in litigation between Legume and Arrow. First, due to an unanticipated sheep shortage, with substantially fewer sheep to shear, the price of wool skyrockets 1,000 percent. Second, due to an unexpected “cold snap,” consumer demand for wool sweaters increases dramatically, resulting in a 500% increase in Arrow’s wool sweater orders to Legume, compared to order averages over the previous ten years (the parties have a long-standing business relationship.)
Legume implores Arrow to increase its per-unit purchase price to $36.00, but Arrow refuses to modify the price term stipulated in the contract. When Arrow refuses to pay a higher price for the sweaters, Legume ceases delivery, claiming that it would be bankrupted by continuing to fill Arrow orders; further, Legume claims that based upon the longstanding business relationship between the parties, Arrow has at least an ethical obligation to pay a higher price.
Who wins? Does Arrow have an ethical obligation to pay a higher price, based upon such an unanticipated change in circumstances?
Discuss ISO 14000 and ISO 14001 and briefly describe what companies must do to achieve this rating. Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material mu..
suppose the demand rose from 750 to 800 units per day.what would you do?show any amount or calculations. g)Suppose that demand rose from 750 to 1,000 units per day.what would you do?show any amount or calculations.
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What is going to be the optimal order quantity? What is going to be the optimal annual cost and optimal cycle length'?
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