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SUMMARY OUTPUT

Regression Statistics
Multiple R 0.941103
R Square 0.885675
Adjusted R Square 0.872483
Standard Error 2.610661
Observations 30

ANOVA
df SS MS F Significance F
Regression 3 1372.796 457.5986 67.14038 2.25E-12
Residual 26 177.2043 6.815549
Total 29 1550

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%
Lower 95.0%
Upper 95.0%
Intercept 137.3699 10.83371 12.67985 1.22E-12 115.1009 159.6389 115.1009 159.6389
Price of Product -16.1184 1.645593 -9.79491 3.26E-10 -19.501 -12.7359 -19.501 -12.7359
Advertisement Type (Y/N) 4.147389 1.039658 3.989187 0.000481 2.010342 6.284436 2.010342 6.284436
Price of Complement -8.71078 1.901333 -4.58141 0.000101 -12.619 -4.80254 -12.619 -4.80254
Upper 95.0%
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.8495825041
R Square 0.7217904313
Adjusted R Square 0.7118543752
Standard Error 3.9243963664
Observations 30

ANOVA
df SS MS F Significance F
Regression 1 1118.775 1118.775 72.64355 2.89E-09
Residual 28 431.2248 15.40089
Total 29 1550

CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%


Lower 95.0%
Upper 95.0%
Intercept 115.36583039 10.04139 11.48903 4.13E-12 94.79697 135.9347 94.79697 135.9347
Price of Product -19.28590189 2.262775 -8.52312 2.89E-09 -23.921 -14.6508 -23.921 -14.6508
Upper 95.0%
Sales Price of Product Advertisement Type (Y/N) Price of Complement Demand_Line
18 4.77 0 4.74 23.37208
20 4.67 0 4.81 25.30067
23 4.75 0 4.36 23.7578
23 4.74 0 4.29 23.95066
23 4.63 0 4.17 26.0721
23 4.56 0 4.66 27.42212
24 4.59 0 4.73 26.84354
25 4.75 0 4.11 23.7578
26 4.75 1 4.21 23.7578
26 4.49 0 4.25 28.77213
26 4.41 1 4.62 30.315
26 4.32 0 4.53 32.05073
27 4.68 0 4.44 25.10781
28 4.66 1 4.19 25.49353
28 4.42 1 4.37 30.12214
29 4.71 0 4.29 24.52923
29 4.66 1 4.57 25.49353
30 4.46 1 4.21 29.35071
30 4.36 1 4.77 31.2793
31 4.47 0 4 29.15785
31 4.43 0 4.31 29.92929
33 4.4 1 4.34 30.50786
34 4.61 1 4.05 26.45782
35 4.09 1 4.73 36.48649
38 3.73 0 4.07 43.42942
39 3.89 1 4.75 40.34367
41 4.35 1 4 31.47216
44 3.84 1 4.15 41.30797
44 3.81 1 4.34 41.88654
46 3.79 1 4.15 42.27226
115.3658 -19.2859
Daily avaerage profit of buyer 40

Value of A 115.3658
Value of B 19.2859

Marginal Cost of the supplier 0.25


Marginal Cost of the buyer 0.125

Price of Centralized SC 3.178437


Profit of Centralized SC 151.5729

Feasibility Check
Optimal Centralized SC Profit 37.89322

Case I: No Reservation Profit


Wholesale Price 3.053437
Order quantity 27.0334
Price of the product 4.580155
Supplier's profit 75.78644
Buyer's profit 37.89322
Total profit of the decentralize 113.6797
Efficiency of the SC 0.75

Case II: Reservation Profit for buyer exists


Wholesale Price 2.976559
Order quantity 27.77474
Price of the product 4.541716
Supplier's profit 75.72945
Buyer's profit 40
Total profit of the decentralize 115.7295
Efficiency of the SC 0.763523

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