Vikramathithya and betaal in supply chain - part 1

Betaal started laughing at Vikram and said “why are you taking me along with your shoulder? It is one of your unfocused actions”. Vikram remains silent and so, Betaal continued “I tell you a story and in the meantime, I may ask the questions. If you don’t answer, I make your head explode. If you answer wrong, then I go back to Moringa tree”. Betaal started the story...
Once upon a time, there was a mango retail merchant living in a town. “At least Today I should make some money by good bargaining” he thought to himself by putting the stand of his old scooter in the wholesale market of fruits and vegetables.
One basket of mangoes is needed per day sale so that he can make a sales volume of Rs 2000. He went on to a wholesaler and asked the price of the mangoes in a basket. The wholesaler replied that it was Rs 1100 per basket.
“Can you give it for Rs 1000?” Retailer asked, imagining a throughput-margin of 1000 Rs per basket would make him to cover his survival cost today.
“Not for a single basket. If you buy all four baskets I hold today, then I can offer it” Since he bought the baskets of mangoes from the farmer at Rs 600 per basket and his throughput of 2400 Rs is good enough for his morning business.
The retailer found it to be a good deal and bought it by paying four thousand rupees. Of Course a little of 100 Rs for a three wheeler to take the baskets to his premise.
Betaal stopped the story and asked Vikram “Who is the winner and loser of this deal?”. Vikram replied “It seems like the winner is the Retailer and saved the money of 400 Rs in four day sales”. Betaal replied “No. As a total volume wholesaler also made lump sum. That Is not the issue. Retailer Story doesn't end now” and flew away to Moringa tree.
Untired Vikram climbed onto the tree and pulled the Betaal with great struggle. He started walking along with it again. Betaal continued the story...

The retailer went on with his business and as per his wish he was able to make money 1000 Rs each day for a couple of days happily. Two baskets were complete.
But on the third day, he was thrilled to see that some of the mangoes from the remaining baskets were over ripped. Anyhow he is able to manage roughly 800 Rs on the day. Fourth day was a nightmare since all leftovers became waste and unsaleable. He lost the sale of the entire day.
He went to the wholesaler to fight against him. “What you gave the mango fruits made me lose today. Give me 1000 Rs back” angrily shouted.
“When I was selling to you all were underrippen and it is your mistake of being unable to sell at fast” Replied by wholesales. “Get out of my business”.
Hearing this heated debate, the market union leader came to make the compromise and made the wholesaler pay 500 Rs to the retailer as compensation.
Betaal stopped the story again and asked Vikram “Who is the winner and loser of that deal now?”. Vikram replied “It seemed like the winner was the Retailer, but both Retailer and wholesaler are losers really. Moreover, the union leader's approach of solving the problem is also not correct. Supply chain collaboration totally failed”.
Betaal said “Wise answer you said. So I am not leaving you now. However, the story is still not over and I will continue too.”