How many units of Bassano should UV order?
What order quanity would a firm choose if the firm owned both Zamatia and UV? I.e, what is the optimal order quantity to maximize the integrated supply chain’s profit?
Suppose Zamatia agrees to buy back from UV all leftover sunglasses for partial refund of $65 per pair. UV must ship leftover inventory back to Zamatia, which it estimates cost about $1.50 per pair. How many units should UV order to maximize its expected profit given the buy-back offer?