Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

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

You are required to select a restaurant and write a report

You are required to select a restaurant and write a report analysing the factors influencing the pricing decisions and the behaviour of costs in the chosen restaurant. Your report should include: a. An analysis of the fa ...

Scm case analysis forecasting and planningyou will be

SCM Case Analysis: Forecasting and Planning You will be developing our course project. First, you will select one company from the list below to focus on during these three units: L. L. Bean. Amazon.com Starbucks. Intel. ...

Task - reflect on your experience of working as part of the

Task - Reflect on your experience of working as part of the group in Assignment using concepts and theories from Topic: Groups & teams, and relevant academic sources. The following questions may provide a useful guide wh ...

Assessment task- analytical report alternative

Assessment task- Analytical report (alternative B) ASSESSMENT Length: 2000 words ±10% (excluding front matter and reference list) Objectives This assessment task relates to course learning outcomes numbers 1 to 5. Before ...

Managing strategic resources and operations assessment task

Managing Strategic Resources and Operations Assessment Task 1: Operations Learning outcomes- Apply critical thinking to address issues in business Convey information clearly and fluently, in high quality written form app ...

Company descriptionnbsp acme manufacturing company is a

Company Description:  Acme Manufacturing Company is a small manufacturing company that makes widgets for all known industries.  It purchases designs from other companies of products already in production and then takes o ...

Assignment instructions- 1 watch videos to learn about

Assignment Instructions- 1. Watch videos to learn about Hubway business http://youtu.be/EakW0mXtkcc  http://youtu.be/n8F648Tbnf4?list=PL4LU_BIyIjD0GpheSOBSVFPYsTL7Wa7U2 2. Read the below case study article below (Hubway: ...

Bsbhrm405a support the recruitment selection and induction

BSBHRM405A Support the recruitment, selection and induction of staff- Describes the performance outcomes, skills and knowledge required to execute tasks associated with the recruitment cycle. Performance of the work desc ...

Ict systems acquisition and integration individual report -

ICT Systems Acquisition and Integration Individual Report - Response to RFP Resource: Tayntor, C, (2002), Successful Packaged Software Implementation, Auerbach Publications; Unit lecture recordings and references. Your T ...

Task description - complete a practical management report

Task Description - Complete a Practical Management Report. Introduction Johnson (as cited in Härtel& Fujimoto, 2014, p. 127) believes that "if Australia is to truly become the 'clever country', then many more organisatio ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate