Are discounts enough to satisfy customer demands? Why or why not?

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Are discounts enough to satisfy customer demands? Why or why not?
Decision Making Failure
For the second time in two months, one of the world’s most famous cruise lines has faced “troubled waters.” One ship lost power and as a result, the boat restricted the ability of passengers to go on and off the boat. Another of the cruise line’s ships lost its ability to steer properly and had to be towed to the next destination. In order for the cruise line to redeem itself, it is now offering vacation trips at $38 a night.
Read the article titled “Carnival Cruise Line in More Troubled Waters.”
Read the article titled “Another Problem Cruise: Second Carnival Ship in Less Than a Week Experiences Trouble at Sea.”
Now, using the Internet, research on other situations similar to the one given above. Based on your research, create a 3- page Microsoft Word document that provides the answers to the following questions:
Are discounts enough to satisfy customer demands? Why or why not?
What other actions can the cruise line take to assist with rebuilding their reputation and making passengers happy in the future?
What led to malfunction of the cruise line? Explain. Use the provided articles and research from two other reputable research sites to support your answer.
Did leadership on the cruise line use the right course of action during and after the incidents? How have they tried to compensate passengers who are in this uncontrollable situation?
Were proper ethical actions used in these instances? How? How did they answer for the malfunctions? Was the answer appropriate from ethical perspective?
Support your responses with examples.
Cite any sources in APA format.
Topic: Are discounts enough to satisfy customer demands? Why or why not?

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#075

Quantity Discounts The UWM Bookstore orders coffee mugs out of a catalog from

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Quantity Discounts The UWM Bookstore orders coffee mugs out of a catalog from a supplier. The demand for these coffee mugs is 1,849 per year. There is a $45 charge for placing an order and the cost per coffee mug to hold it in inventory for the year is $2.50. a- What is the economic order quantity? For part b) assume the cost of the coffee mugs are based on the quantity ordered at one time. If less than 200 are ordered, the unit price is $7.25, if 200-499 are ordered the unit price is $7.00, if 500 to 999 are ordered, the unit price is $6.95, and if 1000 or more are ordered the unit price is $6.75. b- What order quantity will result in the lowest total annual cost to the UWM Bookstore? Be sure to show your work for full credit. Single-Period Inventory System The restaurant you are working at makes one massive batch of ravioli each day. If you run out before the end of the day, the last few customers are less than satisfied, but if you make too much, it can be sold to the local hog farmer for feed. Every serving costs $0.93 to make and can be sold for $8.00 to customers. You have to pay $0.10 per serving to transport the extra servings to the hog farmer, but the hog farmer will pay you $0.48 per serving. The average daily demand is 82 servings with a standard deviation of 26 servings. a- What is the target service level? b- How many servings of ravioli should your restaurant make each day to meet this service level?
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#065

Cash Discounts Joe Milian owns Tulkin Wholesale Co. He sells pa-per, tape. file

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Cash Discounts Joe Milian owns Tulkin Wholesale Co. He sells pa-per, tape. file (olden, and other office supplies to about 120 retailers in nearby caws. His average mailer customer spends about $1,000 a month. When To Jurist acted business in 1986, competing wholesalers were giving retailers invoice terms of PIO, net 30. Tulkin never gave the issue much thought -he lust used the same invoice terms when he billed customers. At that nine, about half of his customers took the discount. Recently he notices a change in the way his customers pay their bills. Checking his records. he finds that 85 percent of the retailers are taking the cash discount. With so many retailers taking the cash chscotmt, it seems to have become a price reduction. In addition, Tulkin learns that other wholesalers are changing their invoice terms. Tulkin decides he should rethink his invoice terms. He knows he could change the percent rare on the cash discount, the number of days the discount ts offered, or the number of days before the face amount is due. Chang-ing any of these-or any combination-will change the interest rate at which a buyer is. in effect, borrowing money if he does not take the &etym. Tulin!, decides that it will be easier to evaluate the effect of different invoice terms if he sets up a spreadsheet to let him change the terms and quickly sec the effective interest rate for each change. a. With 85 percent of Tull:iris customers now taking the discount, what is the total monthly cash dis-count amount?? Is. If Tulkin changes his invoice terms to 1/10, net 30. what interest rate is each buyer paying by not taking the cash discount? With these terms. would fewer buyers be likely to take the discount! Why! c. Tulkin thinks 10 customers will switch to other wholesalers if he changes his invoice terms to 2/10. net 30, while 65 percent of the remaining customers will rake the discount. What interest rate does a buyer pay by not taking this cash discount? For this situation, what will the total gross sales (total invoice) amount beI The total cash discount? The total net sales receipts after the local cash discount ? Compare Tulkin’s current situation with what will happen if he changes his invoice terms to 2/10, net 30. For additional questions related to the problem, see Exercise 18-3 in the Learning Aid for use sits Basic Mar – ketnig, 11th edition.
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#065