$3$a$.$ What is the optimal order quantity for the supplier in this supply chain?

Hint: for the supplier

Cu $=$ w $-$ c $=14001000=400$

Co $=$ c $-$ v $=1000600=400$

Select one:

a$.400$

b$.500$

c$.530$

d$.590$

$3$b$.$ What is the optimal order quantity for the buyer in this supply chain?

Hint: for the buyer

Cu $=$ p $-$ w $=16001400=200$

Co $=$ w $-$ v $=1400-600=800$

Select one:

a$.400$

b$.416$

c$.584$

d$.600$

The optimal order quantity for the entire supply chain can be calculated as:

Cu $=$ p $-$ c $=16001000=600$

Co $=$ c $-$ v $=1000600=400$

Critical Ratio $=0\mathrm{.}6000$

z $($round up rule$)=0\mathrm{.}26$

Q$*=500+0\mathrm{.}26*100=526$

Here we see that considering the supply chain as a whole, instead of two separate entities, results in a higher critical ratio and a higher optimal order quantity. This is the best we can do$!$

$3$c$.$ Which statement is correct?

Select one:

a$.$ The supplier would like the buyer to order less.

b$.$ The supplier would like the buyer to order more.

c$.$ The situation is optimized.

$3$d$.$ How can this situation be optimized?

Select one:

a$.$ The buyer offers the supplier a buy$-$back price b$,$ offering to buy$-$back any unsold goods for this buy$-$back price.

b$.$ The supplier offers the buyer a buy$-$back price b$,$ offering to buy$-$back any unsold goods for this buy$-$back price.

$3$e$.$ What is the optimal buy back price for this supply chain given $($assume shipping costs are zero$)$ rounded to the nearest dollar?

b $=$ Shipping costs $+$ Price

$($Price $$ Wholesale Price$)($Price $$ SalvageValue@retailer$)/($Price $$ Cost$)$

Select one:

a$.1200$

b$.1267$

c$.1430$