Question 1 A distributor is negotiating a supply contract for one of its items. The end-customer demand is forecasted as follows: Quantity Probability 20,000 0.4 30,000 0.2 45,000 0.35 60,000 0.05 The current parameters are as follows: Price charged by distributor to end-customer $100/unit Price charged by supplier to distributor $70/unit Salvage value $10/unit Fixed manufacturing cost 0 Variable manufacturing cost $45/unit The Buyback price offered by the supplier is $40/unit What is the optimal order quantity for the distributor under no contract