Zamatia Ltd. is an Italian upscale maker of eyewear. UV Inc., short for Umbra Visage, is one of their retailers in the United States. To match UV's stylish assortment, UV only operates small boutique stores located in trendy locations. We consider one particular store located in Miami Beach, Florida. Due to long replenishment lead time, UV receives only one delivery of Zamatia glasses before each season. Consider Zamatia's entry-level sunglasses for the coming season, the Bassano. UV purchases each one of those pairs of sunglasses from Zamatia for $75 and retails them for $115. Zamatia's production and shipping costs per pair are $35. At the end of the season, UV generally needs to offer deep discounts to sell remaining inventory; UV estimates that it will only be able to fetch $25 per leftover Bassano at the Miami Beach store. UV's Miami Beach store believes this season's demand for the Bassano can be represented by a normal distribution with a mean of 250 and a standard deviation of 125. Scenario A: Without Any Contracts In this scenario, the supplier produces the products after it receives the order from the buyer (MTO). The supplier bears no risk. The buyer bears all the risk (too much or too little issue). The buyer makes ordering decision. Sunglass example The retailer UV earns 115-75 = $40 for each unit sold, and loses 75-25 = $50 for each unit unsold. The supplier Zamatia earns 75-35 = $40 for each unit sold to UV. Given the above information, apply newsvendor model to determine the optimal order quantity and calculate UV's expected profit. According to the order quantity determined above, calculate the profit of Zamatia. According to the information presented in Lecture 1, apply the newsvendor model to scenario A. Answer the following three questions and round your answer to the nearest integer. Hint: simply apply the newsvendor model for the buyer (the retailer) and you can figure out the optimal order quantity and hence the expected profit for the buyer. Given the order quantity determined by the buyer, you can then calculate the profit for the supplier. Note the supplier makes $40 profit for each unit sold to the buyer. Report the expected profit for the buyer.? ________ (9,200 is not the correct answer) Report the expected profit for the supplier.? _______ (9240 is the correct answer) Report the expected profit for the entire supply chain (buyer + supplier).? _______