As a manager of the WeDoWell Corporation,you have negotiated with several vendors and are on the verge of signing an eight-year contract with Bolts Enterprises.Under the contract,they would ship to you 2,000 titanium bolts per month at a price of $1,000 per bolt.Your assistant has just brought you an article from a trade publication that indicates another company has developed a new technology that reduces the cost of producing the titanium bolts.How would this information affect the optimal length of your contract with Bolts Enterprises?

Question

Quizplus · Accepted Answer

The Answer of As a manager of the WeDoWell Corporation,you have negotiated with several vendors and are on the verge of signing an eight-year contract with Bolts Enterprises.Under the contract,they would ship to you 2,000 titanium bolts per month at a price of $1,000 per bolt.Your assistant has just brought you an article from a trade publication that indicates another company has developed a new technology that reduces the cost of producing the titanium bolts.How would this information affect the optimal length of your contract with Bolts Enterprises?

As a Manager of the WeDoWell Corporation,you Have Negotiated with Several