A gear manufacturer is planning next week production run for four types of gears. If necessary, it is possible to outsource any type of gear from another gear company located down the street. For each type of gear, the table at the bottom of this page shows next week demand, revenue per unit, outsource cost per unit, and time (in hours) required per unit in each production process: If the hours in the three production departments are not used in the making these gears, they can be used for some other products. Gary can supply a maximum of 300 units of each type of gear next week. What should be the production and/or outsource plan for the next week to maximize profit?
Gear Type Gear A Gear B Gear C Gear D
Demand 400 500 450 600
Revenue $12.50 $15.60 $17.40 $19.30
Outsource $7.10 $8.10 $8.40 $9.00
Process Gear A Gear B Gear C Gear D Hours Available Cost per Hour
Forming 0.30 0.36 0.38 0.45 500 $9.00
Hardening 0.20 0.30 0.24 0.33 300 $8.00
Deburring 0.30 0.30 0.35 0.25 310 $7.50

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false

mark, a civil engineer, entered into a contract with david. as per the contract, mark agreed to design and build a house for david for a specified fee. mark provided david with an estimation of the total cost and the contract was mutually agreed upon. however, during construction, when mark increased the price due to a miscalculation on his part, david refused to pay the amount. this scenario is an example of a mistake.

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?