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Question 3 2 pts A distributor is negotiating a supply contract for one of its item. The end-customer demand is forecasted as follows: w Quantity
Question 3 2 pts A distributor is negotiating a supply contract for one of its item. The end-customer demand is forecasted as follows: w Quantity Probability 20,000 0.4 30,000 0.2 45,000 0.35 60.000 0.05 The current parameters are as follows: Price charged by distributor to end-customer $100/unit Price charged by supplier to distributor $70/unit Salvage value $10/unit Fixed manufacturing cost 0 Variable manufacturing cost $45/unit The Buyback price offered by the supplier is $40/unit Assume the distributor order 45,000. What is the expected number of lost sales
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