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Revisit the setting depicted in the note Channel Coordination Using Contracts. Recall that we have a Retail Price of $ 1 0 0 , Production
Revisit the setting depicted in the note Channel Coordination Using Contracts. Recall that we have a Retail Price of $ Production Cost of $ and Salvage Value of $ To simplify the problem assume that demand is equally likely to be exactly or units and use the models in the CoordinationDiscrete.xlxs spreadsheet. Note that when the chain is coordinated the retailer prefers to order units and total profit for the chain will be $
A State terms for a contract with a fixed fee that coordinates the chain and leaves an expected profit level of $ for the retailer. Points
B Find two different sets of terms for a Buyback contract that coordinates the chain, and specify the profit levels for the Manufacturer and Retailer in each case. Points
C Find terms for a Revenue Sharing contract that coordinates the supply chain and leaves roughly $ as expected profit for the Manufacturer. Points
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