Opportunity to become a supplier to large manufacturer

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Reference no: EM131635956

You are the owner of a small tool and die maker business that has the opportunity to become a supplier to a large manufacturer. Two other firms are competing against you for the same contract, which calls for 1,000 units to be delivered in 60 days. The higher your bid, the more profitable you will be. On the other hand, higher bids have a lower chance of being accepted. Fulfilling the order will cost $50,000, and you typically look to earn a minimum margin of 30%. Use decision tree analysis to make a decision about the amount of the bid you will make. Show the decision tree, and explain the reasoning behind your analysis and decision. Your response should be at least 300 words in length.

Reference no: EM131635956

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