Question: Consider a supply chain with a single supplier and a single retailer with a supply chain contract as in Session 22 and 23. In particular,
Consider a supply chain with a single supplier and a single retailer with a supply chain contract as in Session 22 and 23. In particular, the supplier produces at a per unit cost c = $5, and sells it to a retailer at the wholesale price w to be determined by the supplier. The retailer, seeing w, then decides how many units to order to maximize its profit. The uncertain demand satisfies D N (1000, 200), and the retail price is set to be p = $15 with leftover has 0 salvage value. (Hint: Consider using the SC contracts Excel file provided in class to help with your calculation.)
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