Maximum profit for the supply chain


1. Which option delivers the maximum profit for the supply chain: Sandra’s plan, Bill’s plan, or no promotion plan at all? Assume ending inventory of 0.

2. How does the answer change if a discount of $10 must be given to reach the same level of impact that the $5 discount received?

3. Suppose Sandra’s fears about increasing outsourcing costs come to fruition and the cost rises to $22unit for sub-con-tracking. Does this change the decision when the discount is $5?