Question: PLEASE ANSWER THE QUESTION answer Q 1 & 2 Scenario A: Without Any Contracts In this scenario, the supplier produces the products after it receives
PLEASE ANSWER THE QUESTION answer Q &
Scenario A: Without Any Contracts In this scenario, the supplier produces the products after it receives the order from the buyerMTO 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 $ for each unit sold, and loses $ for eachunit unsold. The supplier Zamatia earns $ for each unit sold to UV
QUESTION Given the above information, apply newsvendor model to determine the optimal orderquantity and calculate UVs expected profit.
QUESTION
According to the order quantity determined above, calculate the profit of Zamatia.
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