No Cooperation Sales Demand Probability Demand Satisfied 100 0.2 200 0.3 300 0.2 400 0.3 E[sales] Capacity= 300 Leftover Capacity Shortage Extra Capacity Deficient Capacity 100 200 0 200 100 0 300 0 0 300 0 100 E[left] E[short] Cumulative Probability 2571 Exp.Value 260 Exp. Demand Satisfied Exp. Extra Capacity Exp. Capacity Deficiency 230 Green's Selling Price $ 45.00 per unit Green's purchase price $ Salvage Value $ 15.00 per unit per unit Green's Exp. Profit = Whole's Exp. Profit = $ 70 5,850.00 30 Supply Chain Exp. Profit = Whole's Production Cost $ 10.00 per Unit Possible Capacity Retailer Exp. Profit Manufacturer Exp. Profit Supply Chain Exp. Profit Underage Cost cu= Overage Cost co= 100 200 300 Critical Ratio = 400 Given the current information, how many units of products should Green stock to satisfy demand? What is the associated profit for Whole and Green, respectively? What is the profit for the supply chain in total? Your Answer: The Green Company is a retailer of gourmet bottled pickles that purchases its products from Whole, a gourmet food manufacturer. Green buys units (from Whole) at a price of $15 per unit and sells them to customers at $45 per unit. Currently Whole produces to Green's order and delivers all requirements at the start of the period. Leftover inventory at the end of the season will be donated to a charity organization for free. The demand is lost when Green does not have inventory. Whole's production cost is $10 per unit. Demand(units) Probability. 100 0.2 200 0.3 300 0.2 400 0.3