Case ID: QA-0394
Solution ID: 39880

Galaxy Micro Systems

Case Analysis

Galaxy Micro Systems is negotiating with a vendor about the cost of service support for the warranty on Galaxy's new workstation. The vendor has offered Galaxy a choice between a fixed-price, lump-sum contract and a deferred-payment scheme based on the number of units installed. Uncertainty in the sales forecast complicates the choice. All uncertainties are expressed in terms of discrete probabilities.


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