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solve it coorectly please Question 4 (18 points, 3 points each): Consider a manufacturer of swimsuits with a make to order policy, and a retailer.
solve it coorectly please
Question 4 (18 points, 3 points each): Consider a manufacturer of swimsuits with a make to order policy, and a retailer. For the manufacturer, fixed production cost is 10000 SAR, and the variable production cost is 30 SAR. The retailer sells them for 100 SAR in the regular season. Assume that if the swimsuits are not sold during the regular season, the retailer can sell them to an outlet store for 20 SAR a piece. The wholesale price paid by the retailer to the manufacturer is 70 SAR per unit. The end customer demand in regular season is known to be normally distributed with mean =2000 units and standard deviation =350 units. a) What is the optimal order quantity and average profit for the retailer use two decimal places? b) What is the average profit for the manufacturer? c) What is the order quantity that maximizes the expected supply chain profit? Gt=2000=MRetiler=(100=70)200Ranuf=(7020)200010000=90kStep by Step Solution
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