How are specialty products distributed

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1. A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the maximum inventory would be approximately:

a. 30 percent higher.

b. 70 percent higher.

c. 30 percent lower.

d. 70 percent lower.

2. Why is demand in the business market mostly inelastic?

3. How are specialty products distributed?

4. How much brand equity is tried to unique attributes of a product?

Reference no: EM132076279

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