What are your retailer profits for each stock level?, Ask an Expert

Management Studies

"You are a retailer. You buy a part at the wholesale price of $6.00 from a supplier and retail it for $10.00. It costs your supplier $5.00 to make it. Unsold parts are marked down and sold for $2.50 (assume you do sell them at this price when demand is lower than supply). Demand is uncertain and is uniformly distributed between 10 and 15 units. What are your retailer profits for each stock level? Supplier profits for each stock level? Supply chain total for each stock level? Fill rates for each stock level? What would you choose and why (describe in detail)?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M981006

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