Automated Data Processing (ADP) provides computer software and services to a host of companies, including automobile dealerships. ADP charges dealerships a monthly lease for hardware, software, and support services, but does not charge for training the dealerships’ employees. Dealerships need only pay for their employees’ time and travel to ADP headquarters, where they attend “Software U” at no additional charge. Discuss the specialized investments (if any) made by an automobile dealership, its employees, and ADP—and identify a potential vulnerability that a dealership faces under this arrangement.
Automated Data Processing (ADP) provides computer software and services to a host of companies, including automobile dealerships. ADP charges dealerships a monthly lease for hardware, software, and support services, but does not charge for training the dealerships’ employees. Dealerships need only pay for their employees’ time and travel to ADP headquarters, where they attend “Software U” at no additional charge. Discuss the specialized investments (if any) made by an automobile dealership, its employees, and ADP—and identify a potential vulnerability that a dealership faces under this arrangement.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section: Chapter Questions
Problem 59P
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Automated Data Processing (ADP) provides computer software and services to a host of companies, including automobile dealerships. ADP charges dealerships a monthly lease for hardware, software, and support services, but does not charge for training the dealerships’ employees. Dealerships need only pay for their employees’ time and travel to ADP headquarters, where they attend “Software U” at no additional charge. Discuss the specialized investments (if any) made by an automobile dealership, its employees, and ADP—and identify a potential vulnerability that a dealership faces under this arrangement.
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