Question: PLEASE ANSWER THE QUESTION answer Q 1 & 2 Zamatia Ltd . is an Italian upscale maker of eyewear. UV Inc., short for UmbraVisage, is
PLEASE ANSWER THE QUESTION answer Q &
Zamatia Ltd is an Italian upscale maker of eyewear. UV Inc., short for UmbraVisage, is one of their retailers in the United States. To match UVs stylishassortment, UV only operates small boutique stores located in trendy locations. Weconsider one particular store located in Miami Beach, Florida. Due to longreplenishment lead time, UV receives only one delivery of Zamatia glasses beforeeach season.Consider Zamatias entrylevel sunglasses for the coming season, the Bassano. UVpurchases each one of those pairs of sunglasses from Zamatia for $ and retailsthem for $ Zamatias production and shipping costs per pair are $ At the endof the season, UV generally needs to offer deep discounts to sell remaininginventory; UV estimates that it will only be able to fetch $ per leftover Bassano atthe Miami Beach store. UVs Miami Beach store believes this seasons demand forthe Bassano can be represented by a normal distribution with a mean of and astandard deviation of
Scenario A: Without Any Contracts In this scenario, the supplier produces the products after it receives the order from the buyerMTO The supplier bears no risk. The buyer bears all the risk too much or too little issue The buyer makes ordering decision. Sunglass example The retailer UV earns $ for each unit sold, and loses $ for eachunit unsold. The supplier Zamatia earns $ for each unit sold to UV
QUESTION
Given the above information, apply newsvendor model to determine the optimal orderquantity and calculate UVs expected profit.
QUESTION
According to the order quantity determined above, calculate the profit of Zamatia.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
