Cindy and Mindy were in the same student group while studying for their MBA at UTD. They graduated together but started working as inventory managers in different but competing retailers selling air conditioners in Dallas. While in school, they learned only the economic order quantity model for finding the optimal order sizes. Now they are both purchasing air conditioners from Trane to sell at their stores. Cindy knows that the order setup cost with Trane is $200 and the annual inventory holding cost is $400. Cindy expects that Mindy has the same cost figures. Cindy has accidentally learned that Mindy is ordering 10 air conditions every time she orders. Show how Cindy can use this information to deduce the demand Mindy faces. Explain why would competitors way want to know each other’s demand

Cindy and Mindy were in the same student group while studying for their MBA at UTD. They graduated together but started working as inventory managers in different but competing retailers selling air conditioners in Dallas. While in school, they learned only the economic order quantity model for finding the optimal order sizes. Now they are both purchasing air conditioners from Trane to sell at their stores. Cindy knows that the order setup cost with Trane is $200 and the annual inventory holding cost is $400. Cindy expects that Mindy has the same cost figures. Cindy has accidentally learned that Mindy is ordering 10 air conditions every time she orders. Show how Cindy can use this information to deduce the demand Mindy faces. Explain why would competitors way want to know each other’s demand

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter3: Introduction To Optimization Modeling

Section3.8: A Multiperiod Production Model

Problem 24P

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