Question: Assume that the scenario in Problem 2 is vertically integrated. Calculate the optimal order quantity and manufacturers profit for this scenario. Problem 2 fact pattern

Assume that the scenario in Problem 2 is vertically integrated. Calculate the optimal order quantity and manufacturers profit for this scenario. Problem 2 fact pattern is :Manufacturing cost of a product is $2 each. Wholesale price is $6 each and retail price is $12 each. The demand is normally distribute d with a mean of 2000 and a standard deviation of 500. Cost of overstocking as well as cost of understocking is $6 each.

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