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Chapter 3 - Decentralized

The document outlines a demand scenario for retailers with varying order quantities and associated profits based on different demand levels. It includes wholesale pricing, salvage value, production costs, and probabilities for each demand scenario. The expected profits for retailers and the overall system are calculated, showing significant variations based on order quantities and demand outcomes.

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Hoàng Liêm
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8 views2 pages

Chapter 3 - Decentralized

The document outlines a demand scenario for retailers with varying order quantities and associated profits based on different demand levels. It includes wholesale pricing, salvage value, production costs, and probabilities for each demand scenario. The expected profits for retailers and the overall system are calculated, showing significant variations based on order quantities and demand outcomes.

Uploaded by

Hoàng Liêm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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selling pri 125 Demand scenario - each retailer 8000 10000 12000 14000

wholesale 80 Probability 11% 11% 28% 22%


salvage va 20
productio 35 Decentralized
Order quant. for each retailer
8000 $360,000 $360,000 $360,000 $360,000
10000 $240,000 $450,000 $450,000 $450,000
12000 $120,000 $330,000 $540,000 $540,000
14000 $0 $210,000 $420,000 $630,000
16000 -$120,000 $90,000 $300,000 $510,000
18000 -$240,000 -$30,000 $180,000 $390,000
16000 18000
18% 10% 100%

Expected retailer's Manufacturer's profit System's profit


$360,000 $360,000 $360,000
$450,000 $450,000 $426,900
$540,000 $540,000 $470,700 $1,080,000 $2,021,400
$630,000 $630,000 $455,700
$720,000 $720,000 $394,500
$600,000 $810,000 $295,500

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