HAMPTONSHIRE EXPRESSPROBLEM #1 A. The simulated function given in the Excel spreadsheet “Hamptonshire Express: Problem_#1” allows the. Presents a series of problems that face a newspaper publisher, including inventory level, effort level, subsidy for unsold inventory, and commission for sales. Hamptonshire Express. case study. V.G. Narayanan · Ananth Raman. Save; Share. Save; Share. Format. PDF Hardcopy Black & White. Format.

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Anna Sheen, upon graduating from a Boston-area university with a degree in journalism and operations research, returned to her hometown of Hamptonshire, Pennsylvania, to start a daily newspaper. Sheen daily wrote stories and articles around news and feature material that she exprwss from around town, and typeset the newspaper using desktop software and a PC leased from a large Pittsburgh-area retailer.

Anna sold the copies the following morning from 6 a. Copies not sold by 10 a. Based on data from similar entrepreneurial ventures and interviews with hamptnshire Hamptonshire customers, she estimated that daily demand for the Express was normally distributed with a mean of and standard deviation of How many newspapers should Sheen stock? Verify that the value derived in part a is consistent with the optimal stocking quantity in the Newsvendor model.

Narayanan and Ananth Raman prepared this case. HBS cases exprses developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. In order to utilize exprrss case, please acquire a copy of the eight 8 haamptonshire spreadsheets from Professor V. Narayanan or from Professor Ananth Raman. No part of this publication may eexpress reproduced, stored in hampyonshire retrieval exprress, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School.

Experiments suggested to her that demand was a function of the stylistic quality and pictorial and information content of such a section; hence, of the amount of time she invested in it. Sheen had kept records of the time she had spent each day developing the profile section. Using empirical data from the last few weeks, Sheen had developed Figure 1, to study the relationship between the number of hours invested in creating the profile section, and demand for the Express on any given day.

Average Daily Demand vs. How many hours should Sheen invest daily in the creation of the profile section? Do not spend more than 10 minutes thinking about this question. Sheen would choose h to equate marginal cost of effort with marginal benefit. Problem 3 Becoming extremely busy over the next few months, Sheen decided to hand over the retailing portion of her business to another Hamptonshire resident. Ralph Armentrout offered to run the newsstand from 6 a.


He was to estimate expected demand for the Express on the basis of a copy viewed at 10 p. Armentrout was responsible for any newspapers left unsold at the end of the day. Why does the optimal stocking quantity differ from the optimal stocking quantity identified in Problem 2?

Is the result here consistent with the newsvendor formula? Hamptnshire does her optimal effort in this question differ from the answer to question 2.

Hamptonshire Express: Problems 1-3 Essay

Problem 4 The Express was firmly established as the town newspaper after around a year of operation. Expected daily demand remained at hamptonsihre, the standard deviation of daily demand at Armentrout was responsible for unsold newspapers. Having virtually no competition from other newsstands and hamptonshjre firmly established in his store at the intersection hamptonsjire Center and Main Streets, Armentrout broadened his product line, diversifying into coffee, soft drinks, and breakfast items such as muffins and bagels.

He had become friendly with a number of customers who often stopped to discuss the latest news in the Express. Inspired by the success of the Express and his newsstand, Armentrout decided to launch his own private-label newspaper. Hence, he carried no inventory, instead making copies as customers demanded exprwss.

Sheen believed that the Private posed no threat to the Express. If you were Armentrout, how many copies of the Express would you stock? Compare your stocking decision with the optimal decision in Problem 3a. Why does the optimal stocking quantity differ from the answers given in Problems 1, 2, and 3?

Hamptonshire Express Case Essay Example for Free

How is this answer consistent with the logic of the newsvendor model? To get a better idea of true profitability for each product, he decided to allocate the cost of real estate according to the space occupied by each product.

If he figured daily real estate costs for each additional newspaper at approximately 3 cents, how would this affect his stocking decision? Answer this question qualitatively. Problem 5 Responding to competition from the Private, Sheen invested in an advertising campaign, aimed at making customers more loyal to the Express. As a result of the ad campaign, few customers were willing to switch to the Private when Armentrout stocked out of the Express, choosing instead to not purchase either the Express or the Private.


Owing to higher customer loyalty to the Express, demand for the Private was low, and Armentrout eventually decided to stop publishing the Private. Thus, the situation in Hamptonshire reverted to the scenario described in problem 3 above i.

When Sheen spoke to Armentrout about stocking more copies of the Express, he pointed out that he was stocking what was optimal for his newsstand. You could even sell me all the newspapers on consignment [i.

I will surely buy more if you buy back unsold newspapers. What buy-back price would maximize channel profit? How much does Armentrout stock under this buy-back plan? Identify the combination of transfer price and buy-back price that maximizes expected daily profit for the channel. How does this number compare with expected daily profit for the channel in Problem 2 i. Specifically, she wondered if she, rather than Armentrout, could decide how much to stock at the newsstand.

Why should I pay him a commission if he does not have stocking decision rights? How would the performance of this channel compare with the integrated channel Choose Type of service. By clicking “SEND”, you agree to our terms of service and privacy policy. We’ll occasionally send you account related and promo emails. Eric from Graduateway Hi there, would you like to get an essay? What is your topic? Let me help you.

Caso Hamptonshire Express Essay Anna Sheen, upon graduating from a Boston-area university with a degree in journalism and operations research, returned to her hometown of Hamptonshire, Pennsylvania, to start a daily newspaper. We will write a custom essay sample on. Choose Type of service Writing Rewriting Editing.

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