Q1: The optimal order quantity =

Q2: The retailer's expected profit =

Q3: If the retailer orders the optimal quantity, the manufacturer's profit =

D 14,000 22% 8.000 16,000 18% 8,000 18,000 10% 8,000 Expected profit (S) 360,000 10,000 10,000 10,000 426,900 12.000 12.000 12.000 470.700 9 14.000 14.000 14.000 Demand (unit) 8.000 10,000 12,000 2 Probability 11% 11% 28% 3 Order quantity (unit) 8.000 8.000 8.000 4 Retailer's profit (S) 5 Order quantity (unit) 10,000 10.000 10,000 6 Retailer's profit (S) 7 Order quantity (unit) 12,000 12.000 12.000 8 Retailer's profit (S) Order quantity (unit) 14,000 14,000 14,000 10 Retailer's profit (S) 11 Order quantity (unit) 16.000 16,000 16,000 12 Retailer's profit (S) 10 Order quantity (unit) 18,000 18,000 18.000 14 Retailer's profit (8) 15 16 QE: The optimal order quantity 17 02: The retailer's expected profit 14 Q3: If the retailer orders the optimal quantity, the manufacturer's profit 455.700 16,000 16,000 16,000 394,500 18.000 18,000 18,000 295,500 D 14,000 22% 8.000 16,000 18% 8,000 18,000 10% 8,000 Expected profit (S) 360,000 10,000 10,000 10,000 426,900 12.000 12.000 12.000 470.700 9 14.000 14.000 14.000 Demand (unit) 8.000 10,000 12,000 2 Probability 11% 11% 28% 3 Order quantity (unit) 8.000 8.000 8.000 4 Retailer's profit (S) 5 Order quantity (unit) 10,000 10.000 10,000 6 Retailer's profit (S) 7 Order quantity (unit) 12,000 12.000 12.000 8 Retailer's profit (S) Order quantity (unit) 14,000 14,000 14,000 10 Retailer's profit (S) 11 Order quantity (unit) 16.000 16,000 16,000 12 Retailer's profit (S) 10 Order quantity (unit) 18,000 18,000 18.000 14 Retailer's profit (8) 15 16 QE: The optimal order quantity 17 02: The retailer's expected profit 14 Q3: If the retailer orders the optimal quantity, the manufacturer's profit 455.700 16,000 16,000 16,000 394,500 18.000 18,000 18,000 295,500