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Uncle Coco's Magic Shop: A Negotiation Exercise
Raz, Gal Case OM-1457 / Published November 7, 2011 / 2 pages.
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Product Overview

A toy retailer plans to order a new product from an untested supplier for the winter holiday season. This exercise provides an opportunity for students to construct a model to determine optimal order quantity when demand is not known. Profits are calculated based on wholesale pricing, revenue-sharing, profit-sharing, and buyback contracts.

  • Overview

    A toy retailer plans to order a new product from an untested supplier for the winter holiday season. This exercise provides an opportunity for students to construct a model to determine optimal order quantity when demand is not known. Profits are calculated based on wholesale pricing, revenue-sharing, profit-sharing, and buyback contracts.

  • Learning Objectives