Effect of α on Amounts Ordered FIGURE 7-12: Amount ordered by dealers as a function of the search level Critical Search Level Presence of a critical search level manufacturer prefers the centralized system below the level otherwise, manufacturer prefers the decentralized system. Manufacturer always prefers a higher search level How Can the Search Level Be Increased? Increase brand loyalty customers will more likely search for a particular brand at another retailer if their first choice does not have the product in inventory. Information technology initiatives to increase communication betwe
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