Q1: The optimal order quantity =

Q2: The retailers expected profit =

Q3: If the retailer orders the optimal quantity, the manufacturers profit =

B D G H 1 2 3 4 5 6 7 8 Retailer: unit price = $125, unt cost = $80, and salvage value = $20/unit. Calculate the expected profit and answer the following three questions. Demand (unit) 8,000 10,000 12,000 14,000 16,000 18,000 Probability 11% 11% 28% 22% 18% 10% Order quantity (unit) 8,000 8,000 8,000 8,000 8,000 8,000 Expected profit ($) Retailer's profit ($) 360,000 Order quantity (unit) 10,000 10,000 10,000 10,000 10,000 10,000 Retailer's profit ($) 426,900 Order quantity (unit) 12,000 12,000 12,000 12,000 12,000 12,000 Retailer's profit ($) 470,700 Order quantity (unit) 14,000 14,000 14,000 14,000 14,000 14,000 Retailer's profit ($) 455,700 Order quantity (unit) 16,000 16,000 16,000 16,000 16,000 16,000 Retailer's profit ($) 394,500 Order quantity (unit) 18,000 18,000 18,000 18,000 18,000 18,000 Retailer's profit ($) 295,500 9 10 11 12 13 14 15 16 17 18 Q1: The optimal order quantity= Q2: The retailer's expected profit = Q3: If the retailer orders the optimal quantity, the manufacturer's profit 19 B D G H 1 2 3 4 5 6 7 8 Retailer: unit price = $125, unt cost = $80, and salvage value = $20/unit. Calculate the expected profit and answer the following three questions. Demand (unit) 8,000 10,000 12,000 14,000 16,000 18,000 Probability 11% 11% 28% 22% 18% 10% Order quantity (unit) 8,000 8,000 8,000 8,000 8,000 8,000 Expected profit ($) Retailer's profit ($) 360,000 Order quantity (unit) 10,000 10,000 10,000 10,000 10,000 10,000 Retailer's profit ($) 426,900 Order quantity (unit) 12,000 12,000 12,000 12,000 12,000 12,000 Retailer's profit ($) 470,700 Order quantity (unit) 14,000 14,000 14,000 14,000 14,000 14,000 Retailer's profit ($) 455,700 Order quantity (unit) 16,000 16,000 16,000 16,000 16,000 16,000 Retailer's profit ($) 394,500 Order quantity (unit) 18,000 18,000 18,000 18,000 18,000 18,000 Retailer's profit ($) 295,500 9 10 11 12 13 14 15 16 17 18 Q1: The optimal order quantity= Q2: The retailer's expected profit = Q3: If the retailer orders the optimal quantity, the manufacturer's profit 19