Joe, a Supply Chain Masters student at York University is planning to sell T- shirts with...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Joe, a Supply Chain Masters student at York University is planning to sell T- shirts with logos of the two competing Grey Cup teams at the upcoming Grey Cup in Hamilton. Joe plans to have the shirts made by a local producer, who produces them at $10 and will sell them for $18 each. Joe is planning to sell the T-shirts for $25. If any left at the end of the season, he will dispose them by donating to a charity. The past experience indicates that the demand can reasonably be estimated with the following distribution: Demand (units) 250 300 350 400 450 500 Probability 0.10 0.15 0.15 0.35 0.15 0.10 a) How many T-shirts should Joe order? b) What are the resulting profits for Joe and the producer? c) If the system is managed by the producer in an integrated way, what would be the quantity ordered and the total supply chain profit? d) How can the producer devise a buy-back contract that coordinates the system? What would be the respective profits? e) Devise a revenue sharing contract in which the producer sells the T-shirts for $5 each. Find the revenue share and compute the respective profits. a chance to salvage any unsold t-shirt for $8 each. Consider the previous question. Now assume that both Joe and the producer have a) How many t-shirts should Joe order? What profit would Joe and the producer make? b) What would be the supply chain profit if the producer and Joe work together and integrate? c) Devise a buy-back contract that coordinates the system. What would be the profits of each party? d) If the producer gives Joe a flexibility to order 300 to 400 T-shirts, what would be profits they would each make? A retail store purchases a specific model of Samsung cell phones from Samsung. A unit of these phones, on average, costs $800 dollars to manufacturer. It is known that the annual demand curve for these cell phones is 8,000-4p, where p is the price the store charges. Currently, the supply chain is uncoordinated: First, manufacturer determines its selling price to the store and then the store determines its selling price to the consumers. a) What are the optimal prices the store and the manufacture charge if they sequentially maximize their profits? b) What would be the total annual demand and the profits each of them make? c) The manufacturer realizes that it could improve the supply chain profits by centralizing the supply chain. If it were centralized, what would be the total demand? What would be the total profit the supply chain makes and what would be the selling price? d) Devise a quantity discount scheme the manufacturer can use to achieve coordination. Joe, a Supply Chain Masters student at York University is planning to sell T- shirts with logos of the two competing Grey Cup teams at the upcoming Grey Cup in Hamilton. Joe plans to have the shirts made by a local producer, who produces them at $10 and will sell them for $18 each. Joe is planning to sell the T-shirts for $25. If any left at the end of the season, he will dispose them by donating to a charity. The past experience indicates that the demand can reasonably be estimated with the following distribution: Demand (units) 250 300 350 400 450 500 Probability 0.10 0.15 0.15 0.35 0.15 0.10 a) How many T-shirts should Joe order? b) What are the resulting profits for Joe and the producer? c) If the system is managed by the producer in an integrated way, what would be the quantity ordered and the total supply chain profit? d) How can the producer devise a buy-back contract that coordinates the system? What would be the respective profits? e) Devise a revenue sharing contract in which the producer sells the T-shirts for $5 each. Find the revenue share and compute the respective profits. a chance to salvage any unsold t-shirt for $8 each. Consider the previous question. Now assume that both Joe and the producer have a) How many t-shirts should Joe order? What profit would Joe and the producer make? b) What would be the supply chain profit if the producer and Joe work together and integrate? c) Devise a buy-back contract that coordinates the system. What would be the profits of each party? d) If the producer gives Joe a flexibility to order 300 to 400 T-shirts, what would be profits they would each make? A retail store purchases a specific model of Samsung cell phones from Samsung. A unit of these phones, on average, costs $800 dollars to manufacturer. It is known that the annual demand curve for these cell phones is 8,000-4p, where p is the price the store charges. Currently, the supply chain is uncoordinated: First, manufacturer determines its selling price to the store and then the store determines its selling price to the consumers. a) What are the optimal prices the store and the manufacture charge if they sequentially maximize their profits? b) What would be the total annual demand and the profits each of them make? c) The manufacturer realizes that it could improve the supply chain profits by centralizing the supply chain. If it were centralized, what would be the total demand? What would be the total profit the supply chain makes and what would be the selling price? d) Devise a quantity discount scheme the manufacturer can use to achieve coordination.
Expert Answer:
Answer rating: 100% (QA)
a How many tshirts should Joc order What profit would Joe and the producer make Given the demand probability distribution and that Joe will sell each shirt for 25 while the cost of producing each shir... View the full answer
Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-1118301173
1st Canadian Edition
Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi
Posted Date:
Students also viewed these general management questions
-
Create a simple key logger in C following these instructions: 1. Include two libraries, one that will provide input and output functions and another that will provide a function with an ability to...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Researchers at the Hospital for Sick Children in Toronto compared babies born to mothers with diabetes to babies born to mothers without diabetes (Conditioning and Hyperanalgesia in Newborns Exposed...
-
Develop a marketing plan for a MNP Corporation which is a clothes company. The plan should cover the following items, using the order set down in the marketing plan: a. Describe the product/service...
-
Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The factory overhead is applied on the basis of direct labor hours. A condensed version of the companys...
-
Consider the automobile gasoline mileage data in Table B.3. a. Build a linear regression model relating gasoline mileage \(y\) to engine displacement \(x_{1}\) and the type of transmission...
-
At December 31, 2012, the trading securities for Lynette, Inc., are as follows. Instructions(a) Prepare the adjusting entry at December 31, 2012, to report the securities at fair value.(b) Show the...
-
Richards Corporation had net income of $238,707 and paid dividends to common stockholders of $47,500. It had 56,700 shares of common stock outstanding during the entire year. Richards Corporation's...
-
assume the underlying asset is a stock worth $55 today. Also assume the following spot prices will be realized in the future S 1 =$62 and S 2 =47. Also assume that C(50,1)=$7 and P(50,2)=$3. r=15%....
-
Blink, Inc. is a manufacturer that uses a job-order costing system. At the beginning of April 2020, Blink had two jobs in process, Job V and Job W. During April 2020, Blink continued working on Job V...
-
True or False: The two approaches used in performing replacement analyses are the cash flow approach and the insider viewpoint approach.
-
True or False: The seven step SEAT is only applicable to public sector evaluation after extensive modification.
-
An electric field \(\vec{E}=(200,000 \mathrm{~N} / \mathrm{C}\), right \()\) causes the \(2.0 \mathrm{~g}\) ball in Figure P20.66 to hang at an angle. What is \(\theta\) ? 25 nC ( 2.0 g FIGURE P20.66
-
True or False: If the optimum replacement interval for an over-the-road tractor is 4 years and the rate of increase in O&M costs doubles, then the optimum replacement interval for the next tractor...
-
True or False: OMB's Circular No. A-94, Revised is the definitive document for benefit-cost analysis.
-
Forecast Housekeeping Schedule 14 days ...
-
Don Griffin worked as an accountant at a local accounting firm for five years after graduating from university. Recently, he opened his own accounting practice, which he operates as a corporation....
-
When conducting a work sampling study, how can the number of observations required by the study be reduced?
-
Valley Electric Company generates electrical power at four coal-fired power plants in Nova Scotia, New Brunswick, Quebec, and Ontario. The company purchases coal from six producers in British...
-
Patricia Zell, a dollmaker from Regina, SK, is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investment required for plant and...
-
Describe the role of a paralegal in a family law practice.
-
Define family law and identify the kinds of issues that are addressed in a family law practice.
-
Describe the characteristics of effective fee agreements, and identify the various types of fee agreements that may be used in divorce cases.
Study smarter with the SolutionInn App