Question: QUESTION 1 Revenue Sharing Contract ONLY TYPE LOWER CASE (WITHOUT DOT) Input No-Sharing Revenue Sharing Expected demand (MD) 4000 4000 Standard Deviation of Demand (sigma)
QUESTION 1
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Revenue Sharing Contract ONLY TYPE LOWER CASE (WITHOUT DOT)
| Input | No-Sharing | Revenue Sharing |
| Expected demand (MD) | 4000 | 4000 |
| Standard Deviation of Demand (sigma) | 800 | 800 |
| Manufacturing cost (v) | 20 | 20 |
| Revenue Sharing Percentage (f) | 0% | 30% |
| Retail price (p) | 200 | 200 |
| Item Cost (c) | 100 | 40 |
| Salvage value (s) | 10 | 10 |
| Retailer's Expected Profit | $ 339,480 |
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| Manufacturer's Expected Profit | $ 324,480 |
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| Total Supply Chain Profit | $ 663,960 |
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Q1. What is the underage cost under the revenue sharing contract? a. 80 b. 100 c. 120 d. 140
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Q2. What it the cycle service level under this contract? a. 0.5263 b. 0.6832 c. 0.7692 d. 0.8333
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Q3. What is the optimal order quantity under this contract? a. 4296 b. 4370 c. 4444 d. 4592
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Q4. What are the expected sales of this contract? a. 3947 b. 3933 c. 3920 d. 3893
Q5. What is the retailers expected profit of this contract? a. $384,230 b. $380,190 c. $376,280 d. $368,330
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