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

Pricing Problem, Your job is to develop a prenegotiation position for all c...

Your job is to develop a prenegotiation position for all cost elements with explanations. Available information includes program information, a cost proposal, DCAS and DCAA reports

#title.sourcing and procurement., critically evaluate the relationship betw...

critically evaluate the relationship between the sourcing and procurement strategy with the corporate strategy

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?

Network design, can you help with network design questions?

can you help with network design questions?

Describe the two trade-offs in transportation design, Question 1: Descr...

Question 1: Describe with an example, the final step for achieving strategic fit Explanation of strategic fit Question 2: Describe the two trade-offs in transportatio

Challenge question, what is the potential negative or downside to the long-...

what is the potential negative or downside to the long-term Starbucks-OHL collaboration? identify what you consider to be three major potential problems in such long term relations

Principles and Practices of management, questionHow will you influence peop...

questionHow will you influence people to strive willingly for group objectives in your organization (target based industry)? Apply your interpersonal influence through communicatio

Pull and push strategy, how to make the introduction topic interesting abou...

how to make the introduction topic interesting about the difference between pull and push logics, advantage and disadvantage

Analyse the stages of the procurement cycle, Problem 1: What do you mea...

Problem 1: What do you meant by the ‘Purchasing Function'? Describe some benefits accrued to a firm having an effective purchasing function? Problem 2: Purchasing Depar

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