Question: Hi, could you try to solve this problem? I give excellent ratings. Thank you very much. Consider the case of a single supplier which makes-to-stock

Hi, could you try to solve this problem? I give excellent ratings. Thank you very much.Hi, could you try to solve this problem? I give

Consider the case of a single supplier which makes-to-stock for a single retailer facing uncertain demand for a one-time-sales good. Assume both supplier and retailer maximize expected profits and have the same probabilistic beliefs about demand. (b) Compared to the case where the retailer simply pays the wholesale price to purchase from the supplier's available stock as retail demand materializes, propose four types of contracts that could increase the retailer's expected profits while at the same time increasing the expected profits of the supplier. (c) For each of your contract types in (b), indicate whether or not it reduces the marginal loss of unsold items for the supplier, increases the marginal profit of sold items for the supplier, or both

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