E16 1 Cooperation 2 3 4 5 6 7 8 9 10 Exp.Value 11 12 A X fx|| =D11*B13-E11*B17-F11-B15 B D E F Capacity= 300 Sales Leftover Capacity Shortage Demand Probability Demand Satisfied Extra Capacity Deficient Capacity Cumulative Probability 100 0.2 100 200 0 0.2 200 300 400 5000 323 0.3 0.2 200 100 0 0.5 300 0 0 0.7 0.3 300 0 100 2571 1 E[sales] E[left] E[short] 260 Exp. Demand Satisfied Exp. Extra Capacity Exp. Capacity Deficiency 230 70 30 13 Green's Selling Price $ 45.00 per unit 4 Green's purchase price $ 15.00 per unit 15 Salvage Value $ per unit 16 Supply Chain Exp. Profit = $ 9,620.00 17 Whole's Production Cost $ 10.00 per Unit 18 Possible Capacity Retailer Exp. Profit Manufacturer Exp. Profit Supply Chain Exp. Profit 19 20 Underage Cost cu= 21 Overage Cost co= 100 200 22 23 Critical Ratio = 24 300 400 25 If Whole and Green were one integrated company, how many units would be stocked? What is the associated profit for the supply chain? 26 27 Your Answer: 28 29 30 31 82 83 34 35 36 87