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VII. Smith and Jackson (SJ) sells an outdoor grill to Cusano's Hardware Store. SJ's wholesale price for the grill is $185. Cusano sells the grill

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VII. Smith and Jackson (SJ) sells an outdoor grill to Cusano's Hardware Store. SJ's wholesale price for the grill is $185. Cusano sells the grill for $250 and SJ's variable cost per grill is $ 100. Suppose Cusano's forecast for season sales can be described with a Poisson distribution with a mean of 8.75. Furthermore, Cusano plans to make only one grill buy for the entire season. Grills left over at the end of the season are sold at a 759 5% discount. (Hint: you may have seen this parts of this problem before) a. How many grills should Cusano order? What is Cusano's expected profit given Cusano's order in part a. What is SJ's expected profit given Cusano's order in part a? d. To maximize the supply chain's total profit (SJ's profit plus Cusano's profit), how many grills should be shipped to Cusano's Hardware? Suppose SJ were to accept unsold grills at the end of the season. Cusano would incur a $ 15 shipping cost per grill returned to SJ. Suppose SJ gives Cusano a 90% credit for each returned grill that is, SJ pays Cusano $ 166.50 for each returned grill. Cusano still incurs a $15 cost to ship each grill back to SJ. e. How many grills should Cusano order to maximize its profits? f. What is Cusano's expected profit given Cusano's order in part e

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