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Suppose a retailer sells a product for a retail price $100. The retailer purchases the product from a supplier at a price of $70. The
Suppose a retailer sells a product for a retail price $100. The retailer purchases the product from a supplier at a price of $70. The supplier produces the product at a cost of $60. Assume the product has a salvage value of $50 for the retailer. Now if the supplier agrees to buy back unsold inventory from the retailer, what buy-back price should the supplier offer to ensure the optimal newsvendor critical fractile for the retailer is the same as that of the integrated supply chain? Group of answer choices $55 $57.5 $60 $62.5
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