Chesapeake Bay Lumber company is selling a new product throu…
Chesapeake Bay Lumber company is selling a new product through a single retailer – Home Pepot. Demand for the product is equally likely to be 1, 2, 3, 4, 5, or 6 units per week. Production cost for the supplier is $100, and the retail price to the final customer is $300. The salvage value is 0, items left over at the end of the week are discarded, and orders are placed once per week. If the manufacturer and the retailer were part of the same organization and kept all supply chain profit, how many units would be produced?