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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 $100, Production Cost of $45, and Salvage Value of $5. To simplify the problem assume that demand is equally likely to be exactly 1,2,3,4, or 5 units and use the models in the CoordinationDiscrete.xlxs spreadsheet. Note that when the chain is coordinated the retailer prefers to order 3 units and total profit for the chain will be $108.
A) State terms for a contract with a fixed fee that coordinates the chain and leaves an expected profit level of $10 for the retailer. (10 Points)
B) Find two different sets of terms for a Buy-back contract that coordinates the chain, and specify the profit levels for the Manufacturer and Retailer in each case. (10 Points)
C) Find terms for a Revenue Sharing contract that coordinates the supply chain and leaves (roughly) $10 as expected profit for the Manufacturer. (10 Points)
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