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Answer fast please Problem 2. [50 pts] Alice's Independent Book Store is trying to decide on how many copies of a book to purchase at

Answer fast please

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Problem 2. [50 pts] Alice's Independent Book Store is trying to decide on how many copies of a book to purchase at the start of the upcoming selling season. The publisher incurs a production cost of 520 for every cop).r of the book. The book sells at retail price $100. Any unsold copies at the end of the season have zero salvage value. it is estimated that demand for this book during the season is non-naily distributed with mean 1000 and standard deviation [00. 3) Suppose the publisher offers a wholesale price contract with the wholesale price $40. What is the book store's optimal order quantity? [10 pts] [1) The publisher is considering a revenue-sharing contract. For each copy sold to the end customer. the publisher can get $50 from the book store. How much should the supplier charge the retailer for the wholesale price so that the total Suppl).r chain's expected prot can be maximized? [IS pts] _____________________ .l:|_______________________ c) Instead of the revenue-sharing contract in part (b), the publisha is now considering it returns policy. Now the publisher sells the book to Alice at the wholesale price $50. At the end of the season, the publisher will buy back unsold copies at a pro-determined refund of $r, However. Alice would have to bear the costs of shipping unsold copies hack to the publisher at $4 per copy. What is the value of r under which the retailer's optimal order quantity also maximizes the total supply chain's expected prot? [10 pts} Clarication: the shipping ms: it viewed ma par: ofthe returns contract. so the supply chain optimum inpart (b) is not coffee-ted. d} Suppose the publisher and bookstore use the optimal revenue sharing contract proposed in question (1:). What is the expected prot for the bookstore and the publisher? [15 pts]

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