Ask Question, Ask an Expert


Ask Management Theories Expert

problem 1
A) Debbie is the purchasing manager of Campus Bookstore at Phoenix’s University. Every year in March she desires to plan on the number of ‘Graduation Rings’ the Bookstore should stock. The “Graduation Rings’ are specialty rings made by Tiffany and have the year of graduation engraved on them. Each ring costs $150/- and is sold for $300/-. By July if the “Graduation Rings” were not sold a jeweler would purchase them at a price of $50/- per ring. Rings which didn’t sell in one year can’t be stocked and sold the subsequently year. Based on past history Debbie knew that the demand for the “Graduation Rings” could range from 2 to 7. She computed the probability for the various values of demand to be as follows
Demand in units    2    3     4        5      6       7
Probability           0.1  0.1  0.2    0.3    0.2    0.1
Based on this information, what is the optimal number of “Graduation Rings” Debbie should buy for the Campus Bookstore at Phoenix’s University?  What is Bookstore’s anticipated profit, given the optimal decision?

B) It costs Tiffany $70 to make the rings. Tiffany’s is willing to offer the ‘Graduation Rings” to the Campus Bookstore at $70, provided the Campus Bookstore is willing to share the revenue. Tiffany suggests that the Campus Bookstore can retain 60% of the revenue and must pass on 40% of the revenue to Tiffany. Should the Campus Bookstore at Phoenix’s University take up this offer? Are both the Campus Bookstore and Tiffany’s better off in this scheme? Can you identify a range of manufacturer revenue share that makes sure both parties are better off than before? Show the computation.

problem 2

A) You decide to start a small seated cafe, named Kings Lunch which operates in Phoenix University and does business only throughout the short lunch hour from noon to 1 PM. In your business plan you approximate the everyday demand forecast using a normal distribution with mean 53 and standard deviation 8. You estimate customers will spend $20 on an average, generating a gross profit of $6. On the other hand when more customers come to Kings Lunch than who can be seated then customers will have to be turned away resulting in lost sales. Phoenix University is willing to lease each seat for 250 days in the year at $1000 per seat (that is, $4 per day). What is optimal number of seats you must lease?

B) Phoenix University now mandates which you must serve at least 80% of customers. This implies that you can turn away customers at most 20% of the time! What should the optimal number of seats you must now lease?

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M91623

Have any Question? 

Related Questions in Management Theories

Innovation and it in supply chainsinstructions on

Innovation and IT in supply chains Instructions on Assessment: The assessment for this module is comprised of two parts. You MUST complete both parts. Part 1: The first part is a group presentation, which accounts for 25 ...

Read the following articlepreston g moon j simon r allen s

Read the following article: Preston, G., Moon, J., Simon, R., Allen, S., &Kossi, E. (2015). The relevance of emotional intelligence in projectleadership. Journal of Information Technology and Economic Development, 6(1), ...

The creation of a successful strategic plan is derived from

The creation of a successful strategic plan is derived from researched data; in particular, applicable data can be obtained from a SWOT analysis. Review section 5.4 of the course text, which presents examples of environm ...

Explain the 4 stage model of supply chain integration and

Explain the 4 stage model of supply chain integration and how it would apply to a business trying to enter a global market.

Importance of conversationin a 15-20-slide powerpoint

Importance of conversation In a 15-20-slide PowerPoint presentation, explain why communicating strategy is best accomplished through conversations. The presentation should address the following points: Leaders must truly ...

Project topicsdear students following are the topics for

Project Topics Dear students following are the topics for final project. You are supposed to pick one topic for your project. 1- A study of the practices of two MNCs. 2- A study of World Trade Organization (WTO) and Free ...

Distribution place strategy - discussionretailing -

Distribution (Place) Strategy - Discussion Retailing - Consumer Perceptions Retailing has an impact on the daily lives of each individual all over the world. Retailing is "all the activities directly related to the sale ...

Which two career paths are the most commonly encountered as

Which two career paths are the most commonly encountered as entrees into the InfoSec discipline? Are there other paths? If so, describe them. 1. Why is it important to have a body of standard job descriptions for hiring ...

What four types of controls or applications can be used to

What four types of controls or applications can be used to avoid risk? Describe how outsourcing can be used for risk transference? What conditions must be met to ensure that risk acceptance has been used properly? What i ...

Term paperyou will write an individual term paper on a

Term Paper: You will write an individual term paper on a topic of your choice. To find a topic I suggest you look at the chapters.  Pay attention to the major themes and concepts discussed in the chapters and ask what yo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro