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We consider and simulate the supply chain under a wholesale price contract. As mentioned, we use a retail price of $ 1 0 , a

We consider and simulate the supply chain under a wholesale price contract. As
mentioned, we use a retail price of $10, a unit production cost of $2.50, and a
(monthly) demand that is normally distributed with mean 1,000 and standard
deviation 200. The demand realizations are given in the spreadsheet.
a. Under a wholesale price of $5, what is the retailers optimal order quantity?

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