Critical ratio=(Unit sales price-Wholesale price)/[(Unit sales price-Buy back Price). According to critical ratio and the table, we will get the optimal ordering quantity . Retailer expected profit=E[p*min(D,q)+b*(q-min(D,q))]-r*q Manufacturer profit =q*(r-c)-k-E[b*(q-min(D,q)] expected profits the total supply chain = expected profits of the retailer+ expected profits of the manufacturer How much do we need to set the buy back price (b) to get the expected profit of the supply chain is 1014500? (please shown the calculation formula )

Demand Probability 800 0.11 1000 0.11 1200 0.28 1400 0.22 1600 0.18 1800 0.1