how may cds should top gun order, Supply Chain Management

Assignment Help:

Top Gun Records and various movie studios have decided to sign a revenue-sharing contract for DVDs.  Every DVD costs the studio $2 to make.  The DVD will be sold to Top Gun for $3.  Top Gun in turn prices a DVD at $15 and forecasts demand to be normally distributed, with a mean of 5,000 and a standard deviation of 2,000.  Any unsold CDs are discounted to $1, and all sell at this price.  Top Gun will share 35 percent of the revenue with the studio, keeping 65 percent for itself.

a.    How may CDs should Top Gun order?

b.    How many CDs should Top Gun expect to sell at a discount?

c.    What is the profit that Top Gun expects to make?

d.    What is the profit that studio expects to make?


Related Discussions:- how may cds should top gun order

Define two major drivers of supply chain performance, QUESTION 1 Ide...

QUESTION 1 Identify and define two major drivers of supply chain performance Discuss the role of two of the drivers in creating strategic fit between the supply chain str

Case study, what is the supply chain for milk

what is the supply chain for milk

Western Pharmaceuticals A B, what should the case fill rate be for each pro...

what should the case fill rate be for each product given the current uncertainty levels and order quantities and how does the calculated aggregate case fill rate fill rate differ f

GREAT DIVIDE, can you explain the concept of the great divide in supply cha...

can you explain the concept of the great divide in supply chain management

Evaluate the quality of a product, Question 1: (a) You are required to...

Question 1: (a) You are required to identify the dimensions you would use to evaluate the quality of a product (b) You are required to identify the dimensions you would u

Investigate the relationship with the foreign suppliers, Does the company's...

Does the company's purchasing activities influenced by national and transnational organizations Briefly explain. Investigate the relationship with the foreign suppliers, Compar

Reduced inventory level, Mining and Industrial Tyre Supply Inc (MITSI) dist...

Mining and Industrial Tyre Supply Inc (MITSI) distributes and sells tyres. While most of MITSI's sales come from earthmover and industrial tyres, they also stock and sell a very mi

Discuss the validity in Zimbabwe of the grounds on w, Discuss the validity ...

Discuss the validity in Zimbabwe of the grounds on which the profit maximising model of the firm has been defended.

Master Project , Dear Sir I am Omar. I want to ask you. I am doing master ...

Dear Sir I am Omar. I want to ask you. I am doing master project about supply chain management My project topic is: Supply chain management at Automotive Industry ( Ford and Toy

Warehousing, why warehousing would considered as a necessary evil

why warehousing would considered as a necessary evil

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd