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(1) Assuming the probabilistic demand forecast in the following table, use Excel to reproduce the Production Quantity-Profit graphs of the swimsuit
(1) Assuming the probabilistic demand forecast in the following table, use Excel to reproduce the
Production Quantity-Profit graphs of the swimsuit examples (for the retailor, the manufacturer and
the total) for each of the following cases:
a. Sequential Supply Chain
b. Global Optimization
c. Buy-Back Contract
d. Revenue-Sharing Contract
Assume the same parameters used in the examples in your calculations.
Explain in detail the equations you use for the calculation of each case and comment on the results.
Demand Probability
8000 11%
10000 11%
12000 28%
14000 22%
16000 18%
18000 10%
(2) Assuming the same probabilistic demand forecast in the Question 1, use Excel to reproduce the
Production Quantity-Profit graphs of the ski-jacket examples (for the manufacturer, the distributor
and the total) for each of the following cases:
a. Sequential Supply Chain
b. Global Optimization
c. Pay-Back Contract
d. Cost-Sharing Contract
Assume the same parameters used in the examples in your calculations.
Explain in detail the equations you use for the calculation of each case and comment on the results.
