the total supply chain profit, Supply Chain Management

Assignment Help:

Tom owns an independent bookstore located in Philadelphia.  Tom has to decide on the best order quantity for a new self-help book that is to be released soon.  The books will each cost Tom $20 but will retail for $30.  At the end of the season, Tom can dispose of all of the unsold copies of the book at $5 each.  Tom estimates that demand can be represented by a normal distribution with mean 240 and a standard deviation of 100. The publisher’s cost per book is $7.

a.    What order quantity maximizes Tom’s expected profit?

b.    What is Tom’s expected profit?

c.    What is the resulting profit for the publisher?

Now consider the supply chain to be a single (vertically-integrated) entity.

d.    What quantity will maximize the supply chain’s profit?  

e.    How much is the total supply chain profit?

The publisher is proposing a buy-back arrangement: At the end of the season, they will buy back all unsold copies at $15.00. However Tom is responsible for shipping unsold copies back to the publisher at $1 per book.  
 
f.    What quantity should Tom order if he wishes to maximize his expected profit?

g.    What is the resulting profit for the publisher?

h.    What is the total profit for the supply chain?

Consider the question of the best buy-back price.

i.    Compute the best buy-back price.

j.    Compute the resulting profit for Tom under the best buy-back price.

k.    Compute the resulting profit for the publisher under the best buy-back price.

l.    What is the total profit for the supply chain now?


Related Discussions:- the total supply chain profit

Value steam mapping, Kateville Textile Printing Company Ltd Introduction Ka...

Kateville Textile Printing Company Ltd Introduction Kateville Textile Printing Company Ltd. design company which produces design fashion products and distribute to all branches of

The expected profit for blockbuster, A  movie studio sells  the latest movi...

A  movie studio sells  the latest movie on DVD to Blockbuster at $10 per DVD.  The marginal production cost for the movie studio is $1 per DVD.  Blockbuster prices each DVD at $20

Explain the sugar supply chain, Explain the sugar supply chain. Sugar I...

Explain the sugar supply chain. Sugar Industry in India - brief outline , Types of sugar - Granulated sugar, Regular sugar, Fruit sugar, Superfine and bar sugar, Coarse sugar ;

Briefly explain contract farming, Question 1 Briefly explain contract farm...

Question 1 Briefly explain contract farming Question 2 Explain the aspects that will have an impact on wholesaling of food Question 3 The food product development

Ferrari inbound logistics, i want to know about five value chain of ferrari...

i want to know about five value chain of ferrari company

Assignemtn, You are a manager at a medium sized manufacturing operation tha...

You are a manager at a medium sized manufacturing operation that sells a customized product directly to the consumers and the data pattern is linear but it can have the occasion ra

DIFFERENCE BETWEEN SUPPLY CHAIN AND VALUE CHAIN, WHAT IS THE DIFFERENCE BET...

WHAT IS THE DIFFERENCE BETWEEN SUPPLY CHAIN AND VALUE CHAIN

A local skating rink charges each person $5 to skat, A local skating rink c...

A local skating rink charges each person $5 to skate and another $3 for each skate rental. The rink has determined that on a daily basis, when 100 tickets are sold, the costs per s

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