Question 1. Consider the classical buyer-vendor problem where the vendor orders in bulks and dispatches to the buyer in smaller quantities. That is, the vendor's replenishment order quantity Qw is an integer (n) multiple of the buyer's order quantity (Qr). Assume that the following relation holds. 0 b) c) Kwhr Kphw 2 h a) Find expressions for the buyer's order quantity resulting from the optimal centralized and decentralized solutions. Compute the ratio Qc*/Qd* and comment on the implications of the ratio found. Consider the total supply chain costs resulting from the two solutions. Derive a closed form expression for the Total supply chain cost under centralized solution Total supply chain cost under decentralized solution

Question 1. Consider the classical buyer-vendor problem where the vendor orders in bulks and dispatches to the buyer in smaller quantities. That is, the vendor's replenishment order quantity Qw is an integer (n) multiple of the buyer's order quantity (Qt). Assume that the following relation holds. 0KrhwKwhr2 a) Find expressions for the buyer's order quantity resulting from the optimal centralized and decentralized solutions. b) Compute the ratio Qc/Qd and comment on the implications of the ratio found. c) Consider the total supply chain costs resulting from the two solutions, Derive a closed form expression for the TotalsupplychaincostunderdecentralizedsolutionTotalsupplychaincostundercentralizedsolution