Explain how does the answer change if a discount

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Q. 1) Which option delivers the maximum profit for the supply chain: Sandra’s plan, Bill’s plan or no promotion plan at all?

2) Explain how does the answer change if a discount of Rs. 10 must be given to reach the same level of impact that the Rs. 5 discount received?

3) Suppose Sandra’s fears about increasing out-sourcing costs come to fruition and the cost rises to Rs. 22/unit for subcontracting. Does this change the decision when the discount is Rs. 5?

Reference no: EM13103299

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