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How Many Books Should Barnes Amp Noble Order What Is Their
How Many Books Should Barnes Amp Noble Order What Is Their
How Many Books Should Barnes Amp Noble Order What Is Their
their
Q1) (Project Management) The following information has been gathered for a project:
Q1) (Project Management) The following information has been gathered for a project:
Q3) (Sourcing Decisions in a Supply Chain) A publisher sells books to Barnes & Noble at $12
each. The marginal production cost for the publisher is $1 per book. Barnes & Noble prices the
book to its customers at $24 and expects demand over the next two months to be normally
distributed, with a mean of 20,000 and a standard deviation of 5,000. Barnes & Noble places a
single order with the publisher for delivery at the beginning of the two-month period. Currently,
Barnes & Noble discounts any unsold books at the end of the two-months down to $3 and any
books that did not sell at full price sell at this price.
(a) How many books should Barnes & Noble order? What is their expected profit? How many
books do they expect to sell at a discount?
(b) What is the profit that the publisher makes given Barnes & Noble’s actions?
(c) A plan under discussion is for the publisher to refund Barnes & Noble $5 per book that does
not sell during the two-month period. As before Barnes & Noble will discount them to $3 and sell
any that remain.
• Under this plan, how many books will Barnes & Noble order?
• What is the expected profit for Barnes & Noble?
• How many books are expected to be unsold?
• What is the expected profit for the publisher?
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• What should the publisher do?
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How many books should barnes amp noble order what is their
Business Economics
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