# How many units should Toys ‘R’ Us order to maximize its expected profit?

Posted: June 8th, 2022

Place your order now for a similar assignment and have exceptional work written by our team of experts, At affordable rates

Learning Goal: I’m working on a supply chain exercise and need a sample draft to help me learn.The Gigantic Pocket Monster (Gipokmon) is a new toy that Mattel has introduced. Mattel currently allows toy retailers to place an order in August for delivery in November for the holiday season. It costs Mattel \$1.50 to manufacture and ship each Gipokmon. Mattel charges a wholesale price of \$10. The Toys ‘R’ Us manager plans to sell the toy for \$20. The end-customer demand for this toy is estimated to be 11000 units with a probability of 0.4, and 8000 units with a probability of 0.6. (a) How many units should Toys ‘R’ Us order to maximize its expected profit? What is the resulting profit for Mattel, Toys ‘R’ Us, and the supply chain, respectively?(b) Suppose now Mattel buys back unsold Gipokmon for \$4 per unit. Please answer again the questions in (a).
Requirements: na   |   .doc file

### Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

## Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
\$0.00