Question: please only answer the last 2 question 1G and B This assignment has 2 Questions with sub parts. For all questions, use the following definition
please only answer the last 2 question 1G and B
This assignment has 2 Questions with sub parts. For all questions, use the following definition of distribution types. Distribution Type 1: Normal distribution with mean =75 and std. dev =25 Distribution Type 2: Uniform Distribution U[50,100] Q1. Payback Contract: Suppose that you are the supplier of nelsspapers. Your production cost is $0.5/ newspaper. You supply the newspaper to a retailer at a wholesale price of $1.2. The retailer then sells newspaper for $2 each. If any newspaper is not sold, you reimburse retailer the full wholesale price. 1A. What is your underage cost, overage cost, and critical ratio? (1+1+1 pts) 1B. What is the underage cost of retailer? (1pts) 1C. How many newspapers are you willing to produce if newspaper demand is distributed as distribution type 1 ? (2 pts) 10. How many newspapers are you willing to produce if newspaper demand is distributed as distribution type 2? (2 pts) 1E. Suppose now that you and retailer decide to maximize their total profit? How many newspapers will you produce if newspaper demand is distributed as distribution type 1 ? ( 4 pts) 1F. Suppose now that you and retailer decide to maximize the total protit? How many newspapers will you produce if newspaper demand is distributed as distribution type 2 ? (4 pts) 1G.Suppose that retailer agrees to "payback" for unsold newspapers at price of $B/ newspaper. a. What value of B will induce you to produce the quantity calculated in part IE if demand has a distribution of type 1?(4pts) b. What value of B will induce you to produce the quantity calculated in part F if demand has a distribution of type 2 ? (4 pts)


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