qyour lecturer used to work at a nationwide chain, Business Economics

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qyour lecturer used to work at a nationwide chain

Q. Your lecturer used to work at a nationwide chain of retail swimming pool stores, which pays it's sales force a bonus based on sales (ie a commission). It also pays it's warehouse manager a bonus inversely related to the rm's inventory.

a. Will the sales force and warehouse manager maximize ports? If not, give an example of a decision the sales force and/or warehouse manager might make that does not maximize ports.

b. Can you forecast the problem that arose from this system?

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