Contracts

The lesson will be about the following topics
• Strategic Supply Contracts
• Non-strategic Supply Contracts
Calculating the value of information

Please answer the following questions after reviewing the reading and lessons for Week 3.

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1. Compare and contrast between make-to-stock and make-to-order systems. In your comparison, why does each system require different types of contracts?
2. What are the advantages and disadvantages of each type of contract?
3. What type of contract would you choose? Give reasons for your decision.

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