Decentralized SC or Independent Retailer

Retailer Purchase Cost

Retailer Sales Cost (Price)
Mean
SD
Cost od Understocked
Cost of Overstocked

Service Level

Z Score
Quantity Q*

Expected Lost Sales

L(k)
Expected Lost Sales

Expected Sales

Expected Leftover inventory

Expected Profit

Manufacturer Profit

Total Profit of the Supply Chain

Vertical Supply Chain

Retailer Purchase Cost

Retailer Sales Cost (Price)
Mean
SD
Cost od Understocked
Cost of Overstocked

Service Level

Z Score
Quantity Q*

Expected Lost Sales

L(k)
Expected Lost Sales

Expected Sales

Expected Leftover inventory

Expected Profit

Total Profit of the Supply Chain