solved: A buyer has an incumbent supplier who suppliers 100,000 units at $2…

  

A buyer has an incumbent supplier who suppliers 100,000 units at $2…A buyer has an incumbent supplier who suppliers 100,000 units at $2 per unit. He is running an auction in an attempt to decrease the price. Switching costs to a newsupplier are estimated at $50,000. The buyer should set a reserve price not lower than _______Suppose the auction was conducted and the lowestprice was $1 per unit. Shipping cost is 10% and the cost to validate a new supplier is $20,000. The TCO for the supplier who bid $1 is ________the buyer switch from the incumbent to the supplier who bid $1 (assume that there are no other considerations besides the ones mentioned above)________(fill in elther yes” or “no”).  Engineering & TechnologyIndustrial EngineeringSupply Chain Management OPRE 6371

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