Totally coordinated supply chain

Assignment Help Operation Management
Reference no: EM131155751

For a product that sells for $10 per unit in the open market, wholesale margins are 50% and retail margins are 33% (that is, the wholesalers buys the product for $5 per unit, then sells it to the retailer for $7.50 per unit, who sells it to end customers for $10).   The manufacturing cost for the product is $2 per unit.  HINT: For each stage in the supply chain calculate the values of Cs and Cx - assume cost of shortage is the margin and all of it lost if they don't have it in stock and cost of overstocking is the price paid for the product, that is, if you overstock and don't sell it, there is no salvage value from the product.

Likely demand for the product (demand history data)

Demand observed (X)

Frequency of observation

Probability

Cumulative probability that demand is less than X

12000

2

2/.08

0.08

15000

5

5/.20

0.28

30000

6

6/.24

0.52

46000

10

10/.40

0.92

50000

2

2/.08

1.00

Totals

25

1.00


  • If retail demand for the product is as above, how much product will the retailer stock?
  • How much product will the wholesaler stock?
  • How much product will the manufacturer stock?

If this were a totally coordinated supply chain (for example, the same firm owned the manufacturing company, the distributor and the retailer like, say an Apple store), what would be the optimal stocking level?

Reference no: EM131155751

Questions Cloud

Discuss the core values espoused by that organization : Discuss the core values espoused by that organization. Incorporate information about that organization's values using resources about the organization found in the Waldorf Online Library, the organization's website, a YouTube video created and pos..
Describe the benefits of outsourcing logistics : Identify and describe the benefits of outsourcing logistics will bring to the organization.
Create a listing of the various users of the health record : Create a listing of the various users of the health record. Describe the characteristics of each, and describe the following: Their role in the health care delivery system
Great linkedin strategies that really work : Write a custom essay on the given topic:"Great LinkedIn Strategies That Really Work"
Totally coordinated supply chain : If this were a totally coordinated supply chain (for example, the same firm owned the manufacturing company, the distributor and the retailer like, say an Apple store), what would be the optimal stocking level?
Which bank would you open an account with and why : Explain the differences between the types of network security offered by the banks in the case. Which bank would you open an account with and why?
Measure the success of the initiative : If you wanted to implement a "Must Have" program in your organization, what elements would you include in your implementation plan? What metrics would you use to measure the success of the initiative
What the company might do to improve its ability : With the same two (2) forces in mind, predict what the company might do to improve its ability to address these forces in the near future
Analyze the cause of action and legal basis for his claim : As a result, there are no male secretaries working for the firm. A group of male applicants files litigation that challenges this policy. Explain the legal basis for the suit, the likelihood of prevailing in the cause of action, and the defenses a..

Reviews

Write a Review

Operation Management Questions & Answers

  Does the project management methodology apply equally well

Does the project management methodology apply equally well to programs as it does to projects?

  Value of multiculturalism and diversity in operating

While the primary focus should be on Walmart's global operations, integrate information on the regional and national levels. You also need to assess the value of multiculturalism and diversity in operating (managing) a company in a global environment..

  Party obligated to perform under a contract may delegate

In many situations, the party obligated to perform under a contract may delegate his duty to perform to a third party. However there are two types of contracts where the obligor may not delegate the duty to perform. Identify the two types of contract..

  Assignment on goods and service design

From the e-Activity, examine some of the steps that are involved in designing goods and services. Select two services or two products that are currently on the market. Use the text to compare and contrast each step, and determine the similarities ..

  What were the reasons for change

Find a recent news article about an organization that changed its marketing strategy. What were the reasons for change?

  Can decision reduced to set of discrete alternatives

Can the decision really be reduced to a set of discrete alternatives? Are there some factors that can't be listed and quantified, such as beauty and morality?

  Main products and services that are a good fit to produce

China's Global managers go through multiple decision making processes to choose the best locations for manufacturing their products. Explain the main products and services that are a good fit to produce in this country?

  Describe the relationship between the group''s television

Howard Weiss, owner of a musical instrument distributorship, thinks that demand for bass drums may be related to the number of television appearances by the popular group Stone Temple Pilots during the previous month.

  Is joey liable for the mans injuries

Pam’s Pizza Shop hired Joey to deliver pizza to customers in the company car weekdays from 11 a.m. until 7 p.m. Although Joey drove the company car all day as part of his job, he did not have the privilege of taking the car home after his shift was o..

  You have learned that there are a lot of amazing companies

you have learned that there are a lot of amazing companies throughout the world that are leading the charge in csr and

  What is the firm cost of debt financing

St. Thomas Company is planning to issue $1,000 par value bonds. The bonds will have a coupon rate of 9.5 percent and will be sold at a market price of $980. Flotation costs will amount to 4 percent of market value. The bonds will mature in 15 years a..

  Conflict between an ethical and an economic

Discuss economic and ethical aspects of safety regulations. THE discussion on the chapter 3 “Flying the Friendly Skies” in the economics of public issues 18 edition .We would like to see examples of when there may be a conflict between an ethical and..

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