Question: Consider the following scenario for the ABC Widget Integrated Supply Chain: a multi-tiered supply chain consisting of a Wholesaler(W), a Retailer (R), and a Manufacturer

Consider the following scenario for the ABC Widget Integrated Supply Chain: a multi-tiered supply chain consisting of a Wholesaler(W), a Retailer (R), and a Manufacturer (M). The Wholesaler supplies a product to a Retailer (R), which, in turn, sells the product to end Customer (C). C pays R $11.5 per unit. R pays W $4.5 per unit. W pays the Manufacturer (M) $2.25 per unit. The cost to M are $1.00/unit. Note that ABC Widget sales are seasonal and unsold widgets have no retail value after the end of the season.

The optimal service level for the integrated supply chain is:

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