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

the total supply chain profit, Tom owns an independent bookstore located i...

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

FACEBOOK VALUE CHAIN ANALYSIS YEAR 2012, FACEBOOK VALUE CHAIN AND THE EVAL...

FACEBOOK VALUE CHAIN AND THE EVALUATION BASED ON THE PRIMARY ACTIVITIES AND SECONDARY ACTIVITIES

Supply chain and sourcing management, The purpose of this project is to cri...

The purpose of this project is to critically analyze one major aspect of the supply chain of a specific company, preferably your own company.  You may choose to examine: Upst

Cetralized purchasing., the center-led enablers could be utilized without e...

the center-led enablers could be utilized without expending a great deal of corporate P/SM’s resources or requiring additional personnel?

What is total quality management approach, Question 1: The role of qual...

Question 1: The role of quality remains an influencing factor in the food supply chain. Substantiate analysis explanation   conclusion Question 2: Des

Appeal mechanisms in the current procurement system, The Public Procurement...

The Public Procurement Act 2006 is based on international procurement best practices that guarantee the rights of all parties involved. For instance, unsatisfied bidders and supp

Value Chains, How might the Internet of Things (Iot) and new emerging data-...

How might the Internet of Things (Iot) and new emerging data-analytical tools be used to disintermediate traditional customs brokers, freight consolidators and other 3PLs from your

Operational research problem, GroceryKart.com is responsible for supplying ...

GroceryKart.com is responsible for supplying fresh vegetables and produce to all mom-and-pop retail stores in Mumbai and adjoining suburbs. There are about 600 stores in their netw

Raw material., who''s responsiblity to conform the requirement of the raw m...

who''s responsiblity to conform the requirement of the raw material

Dispatch product, suggest to avoid delays in dispatch of products

suggest to avoid delays in dispatch of products

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