hr_om11_ism_ch13

4how much does it currently cost the university to

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Unformatted text preview: × $40)] = 230 ($561 + $510 + $340 + $450 + $840 + $396 + $240) = 230(3,337) = $767,510 The difference (amount gained by dynamic pricing) is equal to $63,710. CHAPTER 13 A G G R E G A T E P L A N N I N G 3. Frequent price changes can frustrate airline passengers and may do the same to basketball fans. The approach may encourage delayed purchases if the perception is that prices may go down (or, of course, the opposite may occur). Dynamic pricing is time-consuming and possibly confusing to sports fans who have no experience with the concept. ADDITIONAL CASE STUDIES* 1 CORNWELL GLASS Entering the data provided into software, then toggling the pure strategies and trying them yields the following costs: Plan 1 (smooth production): $849,077 Plan 2 (meet demand exactly): $104,575 Plan 3 (produce 1,900 as base, then use OT and subcontracting): $82,858 At this point, the question is, can we do better with trial and error? A better solution follows on the next page. * These cases are found on our Web sites, www.pearsonhighered.com/ heizer and www.myomlab.com. 207 208 CHAPTER 13 A G G R E G A T E P L A N N I N G Aggregate Pl...
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