MGT 181 Lecture Notes - Lecture 14: Direct-Sequence Spread Spectrum, High Tech, Service Life

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In early january, littlefield technologies (lt) opened its first and only factory to produce its newly developed digital satellite system (dss) receivers. Lt mainly sells to retailers and small manufacturers using the dss"s in more complex products. Lt charges a pre- mium and competes by promising to ship a receiver within 24 hours of receiving the order, or the customer will receive a rebate based on the delay. The product lifetime of many high-tech electronic products is short, and the dss receiver is no exception. After 268 days of operation, the plant will cease producing the dss receiver, retool the factory, and sell any remaining inventories. In the initial months, demand is expected to grow at a roughly linear rate, stabilizing after about 5 months. After another month, demand should begin to decline at a roughly linear rate. Although orders arrive randomly to lt, management expects that, on average, demand will follow the trends outlined above.

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