A print house prints business newspapers for its customer, Old York Times (OYT). The cost of printing each newspaper for the print house is $0.4 and it sells newspapers to OYT at $0.7 per copy. OYT then sells those newspapers to customers at $1 per copy.

(a) What is the newsvendor critical ratio for OYT? (b) What is the newsvendor critical ratio for the centralized system, i.e. when the print

house and OYT act as one company? (c) What buyback price should the print house offer OYT to coordinate the supply chain, i.e.

maximize the total supply chain profit?