User Account

All Pages

What is retailers optimal stocking quantity

Assignment Help Management Theories
Reference no: EM13877411

A fashion retailer sells a short life fashion product. Suppose that the retailer gets the product from the manufacturer at the wholesale price of $155, and sells the product at the retail selling price of $500. This retailer will sell the product in the store for 3 weeks only. And unsold quantity of this product will be salvaged at a price of $40. Suppose that the demand of this product for this three weeks selling season is estimated to be normally distributed with a mean of 100 and a variance of 900.

a) What is retailer's optimal stocking quantity? "What is the service level (also called fill rate) with this optimal stocking quantity?

b) Suppose that the manufacturer produces the product at a cost of $63. And the manufacturer and the retailer are managed by the same firm and behave like a whole supply chain, than what is the optimal product quantity for this supply chain?

c) Is the retailer's optimal stocking quantity equal to the supply chain's? If No 'what does it mean?

d) Explain why a return contract such as buy-back can successfully coordinate this supply chain. Find the buy-back price that can achieve coordination when the wholesale price is $155.

Reference no: EM13877411

Questions Cloud

To manage its transaction exposure : HUE, Inc., a  U.S. corporation is contractually due to receive a payment of CHF 5 million in 6 months. To manage its transaction exposure. HUE has decided to establish a money market hedge. How much will HUE receive in USD today if it puts this hedge..
Find the function''s point of diminishing return : Consider the following function relating number of units (in 100) of a product sold, N , to the amount (in $1,000) spend on advertising, S. N = -0.08S3 + 3.6S2 - 30S + 80 ,  5 ≤ S ≤ 25 - Find the function's point of diminishing ret..
What is weighted average cost of capital : What is weighted average cost of capital (WACC) and how do you calculate it?
The first interest resetting date : A company borrowed USD 100 million by way of a 5 year floating rate note priced at 6 month LIBOR plush 85 basis points. On the date of issue, 6 month libor was .95% p.a. 6 months later, on the first interest resetting date, 6 month libor was 1.15%.
What is retailers optimal stocking quantity : What is retailer's optimal stocking quantity and What is the service level (also called fill rate) with this optimal stocking quantity?
Determine importance index for menu and food preparation : Using the information Rick has developed, determine the importance index for each component (menu and food preparation, wait staff, and food ingredients).
What was the kwat repayment amount : Duck Inc, a company based in Oracabessa borrowed USD 50 Milion. from a syndicate of banks at rate of 6% p.a. for one year. At the time of the loan, the spot exchange rate of the Oracabessa Kwat (ORK) WAS 4.50, (european terms). At the maturity of the..
Is jill behavior ethical why or why not : Is Jill's behavior ethical? Why or why not? Use the relevant section of the ACA Code of Ethics to justify your response
What is the firm''s profit maximizing level of output : A competitive firm has the short-run production function given by Q = 4L2 - 0.08L3 Assume the firm's fixed cost is $15,000, the labor cost (wage and benefits) is $70 per unit, and the price of the good in the market is $20. What is the firm's pro..

Reviews

Write a Review

Management Theories Questions & Answers

  Learning in action

Learning contract proposal that will form the basis of your learning contract report.

  Change is the only constant

"Change is the only constant " Evaluate the different types of change that have occurred in Sony.

  How do advertisers try to use group influence

How do advertisers try to use group influence?  Will you find any specific examples and explain the relevant theory of group behavior and influence?

  Case study:saving sony

You have been appointed by Sony as a consultant on change management. Advise Sony on how they could implement the change by using the various theories of change you have learnt.

  How the stock market works

The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice.

  Find the optimal production quantities

Find not only the optimal production quantities, but also the optimal total cost.

  Describe the management process

Describe the management process and identify the skills required to manage business organizations.

  Case study : bert''s bonsai and aquatic sport museum

Case Study : Bert's Bonsai and Aquatic Sport Museum Prepare a knowledge management system.

  Knowledge management techniques

Demonstrate understanding of the many-sided nature of knowledge management

  Theory of transtheoretical model

Demonstrate understanding of the many-sided nature of knowledge management

  Write a paper on historical trends of management

Write a paper on Historical Trends of Management.

  Theory of reasoned action

Theory of Planned Behavior and Integrated Behaviors Model

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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