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consider a situation where the supplier's production cost is reduced if the manufacturer can place some of its order in advance …. In addition to the rush order contract with a pre-established price, we examine whether the supplier should offer advance-order … discounts to encourage the manufacturer to place a portion of its order in advance, even though the manufacturer incurs some …
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We examine a situation where a manufacturer operates in a two-mode production environment. The first mode could involve overseas vendors and manufacturing facilities. If additional units are later required, the company must use its second mode - more expensive last-minute domestic vendors and...
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