What is the system optimal production quantity

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Suppose the manufacturer produces at a cost of $20/unit. The distributor sells to end customers for $50/unit during season and unsold units are sold for $10/unit after season. a) What is the system optimal production quantity and expected profit under global
optimization? b) Suppose the manufacturer is make-to-order (i.e., the distributor must order before it receives demand from end customers).

Reference no: EM13754080

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