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We have figured out in class that the optimal service level of the entire supply chain is 0 . 8 0 . This is the

We have figured out in class that the optimal service level of the entire supply chain is 0.80. This is the service level that maximizes the total profit of the chain.
Based on the service level, between the two candidate buy-back prices, $0.50/newspaper and $0.75/newspaper, which one would the wholesaler choose to induce a higher total profit?
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0.60
0.75

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