Assignment:
What types of industries, beyond book publishing, supplier in question below to likely to find buy-back agreements effective?
Question: Suppose that the retailer SnowInc buys ski jackets from the Chinese manufacturer JacketCo. Due to the short selling season and long delivery lead time for this fashion good, this is a one-time purchase decision. SnowInc estimates the season’s demand for one type of jacket to be normally distributed with mean 500 and standard deviation 100. Retail price for the jacket is $100. If not sold at the end of the season they unload them for $10 per jacket. The wholesale price JacketCo charges is $30 per jacket and JacketCo’s per unit manufacturing cost is $12. How many jackets should SnowInc order and what are the two firms’ profits? If both firms were owned by the same company, how would these answers change?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.