What is the sum of the profit made by the drivers


Problem 1: What strategy do you think the drivers used to decide what orders to place? Comment on this choice of strategy.

Problem 2: On average, what is the sum of the profit made by the drivers and by Cargo over each two-month replenishment period?

Problem 3: Suppose we were still using the first strategy (i.e., decentralized decisions), but that drivers now correctly optimized the quantity to order in each period. What would be the sum of the profit made by Cargo and its drivers over each two-month replenishment period?

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