Artisan tiles is launching new laminate flooring product

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Reference no: EM132250137

Artisan Tiles is launching a new laminate flooring product which is distributed in boxes of 12 units each. Three retail supply channels are being investigated. For each channel, the demand in boxes is linearly defined, and described by coefficients A1= 30200, A2 = 28000 and A3 = 18000 and B1= 860, B2= 610 and B3= 320. The supply or production cost per box is known $12/box. (i) Derive the optimal price and demand for each segment if there are no supply constraints.

1) P1 (price) =

2) D1 (demand) =

3) P2 (price) =

4) D2 (demand) =

5) P3 (price) =

6) D3 (demand) =

(ii) What is the net supply chain profit?

Reference no: EM132250137

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