Question: Using this information/answer choices-- Needs to be answered: What would be the optimal payback rate at which the supply chain profit is maximized? Suppose you
Using this information/answer choices--
Needs to be answered:
What would be the optimal payback rate at which the supply chain profit is maximized?

Suppose you are a newspaper supplier. It costs you $0.40 to produce a newspaper. You sell each newspaper at $0.8 to a retailer, and the retailer sells each newspaper to its customers for $1.2. You are responsible for making production quantity decision and the retailer will buy all the production units from you. All the unsold newspaper will be returned to you and you refund them to the retailer. If you want to maximize your own profits, what should be the optimal service level? 0.40.30.50.66 QUESTION 12 What would be the optimal service level if you and the retailer wish to maximize the total supply chain profits? 0.30.40.50.66 QUESTION 13 Now suppose the retailer pays back each unsold newspaper to you. What would be the optimal payback rate at which the supply chain profit is maximized
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