No Risk Sharing

Publisher's unit cost

Publisher's unit selling price
Publisher's unit compensation cost to B&N
B&N unit cost
B&N unit unit selling price
B&N unit salvage value
B&N Marginal Profit/Cost of Understocking
B&N Marginal Loss/Cost of Overstocking
Optimal CSL
Mean Customer demand
Standard deviation of customer demand
Optimal Order Quantity

1
12
0
12
24
3
12
9
0.5714285714
20000
5000
20900.06184896

Expected B&N profit - term1

Expected B&N profit - term2
Expected B&N profit - term3
Expected B&N profit - term4
Expected B&N profit
Expected B&N overstock - term1
Expected B&N overstock - term2
Expected B&N overstock
Publisher's revenue
Publisher's cost
Publisher's profit
Supply Chain Profit

$
$
$
$
$
$
$
$
$
$
$
$

240,000.00
(41,215.71)
(107,486.03)
107,486.03
198,784.29
514.32
1,962.65
2,476.97
250,800.74
20,900.06
229,900.68
428,684.97

Partial Risk Sharing

1
12
5
12
24
8
12
4
0.75
20000
5000
23372.4487509804
$
$
$
$
$
$
$
$
$
$
$
$

240,000.00
(25,422.13)
(70,117.35)
70,117.35
214,577.87
2,529.34
1,588.88
4,118.22
280,469.39
43,963.55
236,505.84
451,083.71

Complete Risk Sharing

1
12
9
12
24
11.99
12
0.01
0.9991673605
20000
5000
35721.1201957139
$
$
$
$
$
$
$
$
$
$
$
$

240,000.00
(170.87)
(356.91)
356.91
239,829.13
15,708.03
14.23
15,722.26
428,653.44
177,221.44
251,432.00
491,261.13

Cost of Manufacturing
Introductory Price
Mean demand
Given
Information Standard deviation
Unit Salvage Value
Annual holding cost

Q.1.

Q.2.

Q.3.

Marginal Profit
Cost of Overproduction
Optimal CSL
Optimal Production Quantity
Expected Profit (term 1)
Expected Profit (Term 2)
Expected Profit (term 3)
Expected Profit (Term 4)
Expected Profit
Expected Understock (Term 1)
Expected Understock (Term 2)
Expected Understock

150
200
100
40
50
20
50
120
0.294118
78.3442
3823.529
-1791.702
-1843.393
2765.089
2953.524
15.28645
14.52899
29.81544

Given
Information

Q.4.

Q.5.

Q.6.

Cost of Manufacturing
Introductory Price
Mean demand
Standard deviation
Unit Salvage Value
Annual holding cost
Marginal Profit
Cost of Overproduction
Optimal CSL
Optimal Production Quantity
Expected Profit (term 1)
Expected Profit (Term 2)
Expected Profit (term 3)
Expected Profit (Term 4)
Expected Profit
Expected increase in Profit
Expected Understock (Term 1)
Expected Understock (Term 2)
Expected Understock

150
200
100
15
50
20
50
120
0.294118
91.87907
3823.529
-671.8881
-2161.861
3242.791
4232.572
1279.047
5.732419
5.905722
11.63814