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A retailer following a (Q,r) policy and facing Poisson demands, places order of size Q with the supplier which doesn't have economies of scale in ordering/producing.

1. describe form of the supplier's optimal policy in the absence of demand information sharing.

2. describe form of the supplier's optimal policy if retailer shares demands information with supplier.

3. Under what circumstances will retailer be willing to share information?

 

Project Management, Management Studies

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