# Question: Tom owns an independent bookstore located in Philadelphia Tom h

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?

d. What quantity will maximize the supply chain’s profit?

e. How much is the total supply chain profit?

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?

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?

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?

d. What quantity will maximize the supply chain’s profit?

e. How much is the total supply chain profit?

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?

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?

## Answer to relevant Questions

Some experts recommend working with preferred vendors even if their prices are higher than other vendors. Why do you think this is the case?Discuss the functions of the security manager, and what are the qualifications and ...The interest rate required by investors on a debt security can be expressed by the following equation: Interest rate = RRF + IP + DRP + LP + PRP + CRP. Define each term of the equation, and explain how it affects the ...Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.You have worked as a real estate agent for 10 years and are earning about $100,000 per year with your current agency. You prepared the following information to use in evaluating the financial feasibility of starting your own ...When and why was the League of Nations created and what were its shortcomings?Post your question