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To determine the new optimal service level considering the Wholesaler's (W) buyback program where W will pay the Retailer (R) $1.20 for each unsold item,

To determine the new optimal service level considering the Wholesaler's (W) buyback program where W will pay the Retailer (R) $1.20 for each unsold item, we need to adjust our calculations for the Newsvendor Model to reflect this buyback plan

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