# Project #28210 - Supply Chain Management

I have a simple Probability scenario that I cannot remember how to do.

Consider the following demand scenario:

 Quantity Probability 4,000 10% 4,400 12% 4,800 18% 5,000 17% 5,600 13% 6,000 11% 6,400 8% 6,800 6% 7,200 5%

The variable production cost is \$45/unit and the fixed cost is \$135,000. The product is sold to end customers for \$120/unit during the season and any unsold units are sold for \$35/unit after the season.  In a buy back scenario, the manufacturer will buy back units at \$55/unit.  Also, in a payback scenario, the retailer will pay \$9 for each unit it does not purchase.  In both the payback and buy back scenarios, the manufacturer sells the product for \$75.00.

 Subject Business Due By (Pacific Time) 04/19/2014 07:00 pm
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