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Target is trying to decide on how many units of Xbox one S to purchase for the holiday season. One unit of Xbox one S retails at $190.00. Microsoft, manufacturer and supplier of the Xbox one S to B&N sells a unit to Target for $170.00. Target will dispose of all of the unsold units of the Xbox one S at 30% off the retail price, at the end of the season. Target estimates that demand for this book during the holiday season is normally distributed with a mean of 100 and a standard deviation of 42.Microsoft is thinking of offering the following deal to Target. At the end of the season, Microsoft will buy back unsold units at a predetermined price of $160.00. However, Target would have to bear the costs of shipping unsold units back to Microsoft at $3.00 per unit.h. Write an overall conceptual analysis about all the expected profits in all the cases above? (i.e., comment on how different parties gain/lose in these different scenarios)

Operation Management, Management Studies

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