Decentralized SC or Independent Retailer

Retailer Purchase Cost 5

Retailer Sales Cost (Price) 10.5
Mean 1000
SD 300
Cost od Understocked 5.5
Cost of Overstocked 5

Service Level 0.52380952381

Z Score 0.059717099785
Quantity Q* 1017.915129936

Expected Lost Sales

L(k) 0.369795
Expected Lost Sal 110.9385 554.6923

Expected Sales 889.0615421179

Expected Leftover inventory128.8535878177

Expected Profit 4245.57054256

Manufacturer Profit 4071.660519742

Total Profit of the Supply C 8317.231062302

Vertical Supply Chain

Retailer Purchase Cost 1

Retailer Sales Cost (Price) 10.5
Mean 1000
SD 300
Cost od Understocked 9.5
Cost of Overstocked 1

Service Level 0.904761904761905

Z Score 1.30917171678578
Quantity Q* 1392.75151503573

Expected Lost Sales

L(k) 0.0446473146
Expected Lost Sales 13.394194393

Expected Sales 986.605805607477

Expected Leftover inventory 406.145709428256

Expected Profit 8966.60944384278

Total Profit of the Supply Chain 8966.60944384278

Independent Retailer / Decentralized

Purchase Cost
Sales Cost
Mean
SD

Cost od Understocked
Cost of Overstocked

Service Level
Z Score
Quantity

L(k)(Standard normal loss function value)

Expected lost sales

Expected Sales
Expected leftover inventory

Expected Retailer Profit

Manufacturer Profit

Totap SC cost
 Vertical

3.5 Production cost

5 Sales Cost
5000 Mean
1500 SD

1.5 Cost od Understocked

3.5 Cost of Overstocked

0.3
-0.524400513 Service Level
4213.3992309 Z Score
4213.3992309 Quantity

0.7147729731
1072.1594596 Z Score
L(k)(Standard normal loss
3927.8405404 Expected lost sales
285.55869058
Expected Sales
4892.3053935 Expected leftover invento

8426.7984619 Total SC Profit

13319.103855
 1.5
5
5000
1500 Production Cost
Selling Price
3.5 Quantity
1.5 Expected Retailer Profit
Manufacturer Profit
Total Profit of the Supply Chain

0.7
0.524400512708041
5786.60076906206
5786.60076906206

0.524400512708041
0.190372460387662
285.558690581492

4714.44130941851
1072.15945964355

14892.3053934994
Vertical Integration
1.5
5
5786.60076906206
4714.44130941851
1072.15945964355
14892.3053934994
 Mean 5000
SD 1500

Manufacturer
Production Cost 1.5
Selling Price 5
Wholesale 3.5
Buyback Cost/Unsold Product 2.6
Retailer
Purchase Cost 3.5
Selling Price 5

Decentralized
Cost od Understocked 1.5
Cost of Overstocked 0.9

Service Level 0.625

Z Score 0.318639363964375
Quantity Q* 5477.95904594656

Expected Lost Sales

L(k) 0.259705
Expected Lost Sales 389.5582

Expected Sales 4610.44177876932

Expected Leftover inventory 867.517267177245 2255.54489466084

Expected Retailer Profit 3879.35223303362 6134.897

Manufacturer Profit 10955.9180918931 8700.373

Total Profit of the Supply Chain 14835.2703249267 14835.27

 BuyBack Contract
Wholesale Price 3.5
Selling Price 5
Quantity 5790.63553923924
Expected Retailer Profit 6385.48394377509
Manufacturer Profit 8506.81202046932
Total Profit of the Supply Chain 14892.2959642444

2255.545

2255.545
Wholesale Contract 1 Wholesale Contract 2 Vertical
4.2 4.2 1.5
5 7.5 5
3508.31317518537 4773.54617675483 5786.601
2175.16194410987 12062.7547556397 4714.441
9472.44557300049 12888.5746772381 1072.159
11647.6075171104 24951.3294328778 14892.31
 Mean 5000
SD 1500

Manufacturer
Production Cost 1.5
Selling Price 5
Wholesale 2
Revenue Sharing 0.1
Retailer
Purchase Cot 2
Selling Price 5

Decentralized
 0.9

Cost of Understocked 2.5

Cost of Overstocked 2

Service Level 0.555555555555556

Z Score 0.139710298881862
Quantity Q* 5209.56544832279

Expected Lost Sales

L(k) 0.332974281
Expected Lost Sales 499.46142147

Expected Sales 4500.53857852731

Expected Leftover inventory 709.026869795484

Expected Retailer Profit 9833.2927067273

Manufacturer Profit 4855.05201342505

Total Profit of the Supply Chain 14688.3447201524