Question: A supplier whose production cost is $2 per unit sells to a retailer at a wholesale price of $5 per unit. The retailer purchases products

A supplier whose production cost is $2 per unit sells to a retailer at a wholesale price of $5 per unit. The retailer purchases products in anticipation of a random demand whose forecast is given below. The retailer resells them at a price of $10 per unit. Further, unsold items cannot be salvaged. Possible demand realizations Probability 1 0.1 2 0.1 3 0.1 4 0.1 5 0.1 6 0.1 7 0.1 8 0.1 9 0.1 10 0.1 How many units will the retailer buy from the supplier under this wholesale price contract (at the wholesale price of $5)? Your Answer: Answer Question 28 (3 points) What is the profit the supply chain would have achieved if it were centralized, i.e. what is the first-best profit for the supply chain? Your

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