Question: Consider a two-echelon serial process where the second stage (R) is a rather minor operation adding little extra value to the product. To be more

Consider a two-echelon serial process where the second stage (R) is a rather minor operation adding little extra value to the product. To be more specific, suppose we have an item with the following characteristics (borrowing the notation of "W" for warehouse, or primary stage and "R" for retailer, or finishing stage. vR = $6/unit vW = $5/unit AW = $20 AR = $10 r = 0.24 $/$/year

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