PLEASE ANSWER THE QUESTION answer Q $1$&$2$

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$.$

QUESTION $1$ Given the above information, apply newsvendor model to determine the optimal orderquantity and calculate UV$$s expected profit.$$QUESTION $2$

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

EXAMPLE O$$Neill Inc.$$

$$ Assume we order $3500($Q$=3500$ and Q can be any quantity and not necessarily the optimal orderquantity$)$ Expected lost sale:$$ z $=($Q$-)/\backslash$sigma $=(3500-3192)/1181=0\mathrm{.}26$ L$($z$)=0\mathrm{.}2824$ Expected lost sale $=\backslash$sigma $\backslash$times L$($z$)=1181\backslash$times $0\mathrm{.}2824=334$

$$ Expected sales$$ Expected demand $$ Expected lost sales $=3192-334=2858$

Expected leftover inventory$$ Order quantity $$ Expected sales $=3500-2858=642$

$$ Expected profit$($Price$-$cost$)\backslash$times Expected Sales $-($Cost$-$Salvage value$)\backslash$times Expected leftover inventory $=(190-110)\backslash$times $2858-(110-90)\backslash$times $642=$ $$215,800$