PLEASE ANSWER THE QUESTION answer Q $1$&$2$ From Scenario A

Zamatia Ltd$.$is an Italian upscale maker of eyewear. UV Inc., short for UmbraVisage, is one of their retailers in the United States. To match UV$$s stylishassortment, UV only operates small boutique stores located in trendy locations. Weconsider one particular store located in Miami Beach, Florida. Due to longreplenishment lead time, UV receives only one delivery of Zamatia glasses beforeeach season.

Consider Zamatia$$s entry$-$level sunglasses for the coming season, the Bassano. UVpurchases each one of those pairs of sunglasses from Zamatia for $$75$and retailsthem for $$115.$Zamatia$$s production and shipping costs per pair are $$35.$At the endof the season, UV generally needs to offer deep discounts to sell remaininginventory; UV estimates that it will only be able to fetch $$25$per leftover Bassano atthe Miami Beach store. UV$$s Miami Beach store believes this season$$s demand forthe Bassano can be represented by a normal distribution with a mean of $250$and astandard deviation of $125.$

Scenario A: Without Any Contracts $$In this scenario, the supplier produces the products after it receives the order from the buyer$($MTO$).$The supplier bears no risk. $$The buyer bears all the risk $($too much or too little issue$).$The buyer makes ordering decision. $$Sunglass example$$The retailer UV earns $115-75=$$$40$for each unit sold, and loses $75-25=$$$50$for eachunit unsold.$$The supplier Zamatia earns $75-35=$$$40$for each unit sold to UV$.$

Applying Newsvendor model No contract

According to the information presented in Lecture $1,$ apply the newsvendor model to scenario A:Without any contracts. Answer the following three questions and round your answer to the nearest integer.

Hint: simply apply the newsvendor model for the buyer $($the retailer$)$ and you can figure out the optimal order quantity and hence the expected profit for the buyer. Given the order quantity determined by the buyer, you can then calculate the profit for the supplier. Note the supplier makes $$40$ profit for each unit sold to the buyer.

QUESTION $1$

$$Given the above information, apply newsvendor model to determine the optimal orderquantity and calculate UV$$s expected profit.

Report the expected profit for the buyer.

QUESTION $2$

$$According to the order quantity determined above, calculate the profit of Zamatia.

Report the expected profit for the supplier.

QUESTION $3$

Report the expected profit for the entire supply chain $($buyer $+$ supplier$).$