A Buyer for a Large Sporting Goods Store Chain Must

question 4

Essay

A buyer for a large sporting goods store chain must place orders for professional footballs with the football manufacturer six months prior to the time the footballs will be sold in the stores. The buyer must decide in November how many footballs to order for sale during the upcoming late summer and fall months. Assume that each football costs the chain $45. Furthermore, assume that each pair can be sold for a retail price of $90. If the footballs are still on the shelves after next Christmas, they can be discounted and sold for $35 each. The probability distribution of consumer demand for these footballs (in hundreds) during the upcoming season has been assessed by the market research specialists and is presented below. Finally, assume that the sporting goods store chain must purchase the footballs in lots of 100 units.
-What is the optimal strategy for order quantity, and what is the expected profit in that case?

Understand the historical development and impacts of the Industrial Revolution, including the creation of company towns.

Identify the contributions of the Gilbreths to scientific management and efficiency studies.

Comprehend the central role of self-esteem in human relations and its effects.

Explain the principles and importance of Total Quality Management (TQM) in modern organizations.

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Definitions:

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, marked by significant events, battles, and shifts in power.

Fordism

An industrial production model based on mass production and consumption, characterized by standardized products and assembly-line mechanisms.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity.

Human Relations

An area of management practice focusing on improving worker productivity through better interpersonal interactions and understanding of human behavior in the workplace.