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a retailer has a flexibility quantity contract to meet its demand D by ordering Q. The retailer thinks that its weekly demand can be met
a retailer has a flexibility quantity contract to meet its demand D by ordering Q. The retailer thinks that its weekly demand can be met by ordering q = 10 for every week. Thus, the retailer passes this quantity as what is likely to be ordered to the supplier. However, depending on the circumstances the demand D turns out to be different than q. Demands over the last three weeks and the corresponding retailers orders are given below. Demand week 1 is 12, demand week 2 is 7, demand week 3 is 11. Q week 1 is 12, Q week 2 is 8, Q week 3 is 11. What are the contracts flexibility parameters alpha and Beta
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