Your professor used to work at a national 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 pro ts? If not, give an example of a decision the sales force and/or warehouse manager might make that does not maximize pro ts.
b. Can you predict the problem that arose from this system?