The expected profit for blockbuster, Supply Chain Management

Assignment Help:

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 to its customers.  DVD s are kept on the regular rack for a one-month period, after which they are discounted down to $5, Blockbuster places a one order for DVDs.  Their current forecast is that sales will be normally distributed, with a mean of 10,000 and a standard deviation of 5,000.

a.    How many DVDs should Blockbuster order?

b.    What is its expected profit?

c.    How many DVDs does it expect to sell at a discount?

d.    What is the profit that the studio makes given Blockbuster's actions?

A plan under discussion is for the studio to refund Blockbuster $4 per DVD that does not sell during the one-month period.  As before, Blockbuster will discount them to $5 and sell any that remain.  

e.    Under this plan, how many DVDs should Blockbuster order?  

f.    What is the expected profit for Blockbuster?  

g.    How many DVDs are expected to be unsold at the end of the month?

h.    What is the expected profit for the studio?  

i.    What should the studio do?

 


Related Discussions:- The expected profit for blockbuster

Cranfield reliable stationary, Designing a Distribution Centre Cranfield R...

Designing a Distribution Centre Cranfield Reliable Stationery (CRS) National Fulfilment Centre

Forecast, develop a method that will optimal ordering quanties so that we m...

develop a method that will optimal ordering quanties so that we maximize the gross profits and also take into account inventory costs, product cost and price markups

Show the cpfr model and its benefits, Question 1: Describe in detail th...

Question 1: Describe in detail the management processes in the SCOR model. Diagram and Definition of each process Ambit, Main aspects and functions of SCOR model

Examine the fundamental dimensions of customer service, Question 1 What do...

Question 1 What do you mean by warehousing and What are the attributes of Ideal Warehousing? Question 2 Examine the fundamental dimensions of customer service Ques

Discuss three main advantages of international purchasing, QUESTION (a)...

QUESTION (a) Explain the meaning of International Purchasing and illustrate your answer with an example (b) (i) Discuss three main advantages of International Purchasing

Zara report, got my assignment submission due on thursday 18th i would like...

got my assignment submission due on thursday 18th i would like to know the price for 2300 words

Briefly explain main stages of a typical procurement cycle, Problem 1: ...

Problem 1: (a) Briefly explain the main stages of a typical procurement cycle. (b) Discuss four methods of dealing effectively with low value orders. Problem 2: J

Problems, 1- The smallest defect in a computer chip will render the entire ...

1- The smallest defect in a computer chip will render the entire chip worthless. Therefore, tight quality control measures must be established to monitor these chips. In the past

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