The marginal production cost, Supply Chain Management

Assignment Help:

A publisher sells books to Borders at $12 each.  Borders prices the book to its customers at $24 and expects demand over the next 2 months to be normally distributed, with a mean of 20,000 and a standard deviation of 5,000.  Borders place a one order with the publisher for delivery at the starting of the two-month period.  Presently, Borders discounts any unsold books at the end of two months down to $3, and any books that did not sell at full price sell at this price.

 

a.       Borders will consider this book to be a bestseller if it sells 25,000 copies.  What is the probability that it is a bestseller?

b.       Borders will consider this book to be a flop if it sells less than 50% of the mean forecast.  What is the probability that it is a flop?

c.       What is the probability that the book will sell within 20% of its mean forecast?

d.      What order quantity maximizes Borders' expected profit?

e.      How much is this expected profit? 

 f.        What is the corresponding fill rate?

g.       How many books does Borders expect to sell at a discount?

h.      The marginal production cost for the publisher is $1 per book.   How much profit does the publisher make given Borders' actions?

 


Related Discussions:- The marginal production cost

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 ;

Evaluate the case for outsourcing the transport, Question 1: Critically...

Question 1: Critically evaluate the case for outsourcing the transport and distribution activities of an organisation to a third party provider. Question 2: a) What are

Prompt, 4. About 5% of delivered products are spoiled upon delivery with ei...

4. About 5% of delivered products are spoiled upon delivery with either the fish or plants dying, or both, due to sensitivity to changes in temperatures, which is a major financial

Errors of measurement in quality of product, Errors of Measurement To e...

Errors of Measurement To ensure the quality of a product, errors of measurement is very important, as test cases are executed at various levels defects if found any in the test

What are the different methods for evaluating inventory cost, Q. What are t...

Q. What are the different methods for evaluating inventory cost? i. FIFO method ii. Average cost method iii. LIFO method iv. Actual cost method v. Base stock prices

Case study, Where does Ace Dairies fit into this? What specific activities ...

Where does Ace Dairies fit into this? What specific activities form the logistics in Ace Dairies?imum 100 words accepted#

Inventory managment, I want to know the flow of Inventory management proces...

I want to know the flow of Inventory management process

Warehouse, introduction of materials handling

introduction of materials handling

Explain the concept of charter agreement, Question 1  Explain the Shipping...

Question 1  Explain the Shipping Process Flow Chart and the issues associated with seaports Question 2 Discuss the important documents that are used in international logistic

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