Find the optimal ordering policy for the stochastic single-period model with a setup cost where the demand

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Find the optimal ordering policy for the stochastic single-period model with a setup cost where the demand has the probability density function

and the costs are
Holding cost = $1 per item,
Shortage cost = $3 per item,
Setup cost = $1.50,
Production cost = $2 per item.
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Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

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Question Posted: Sep 22, 2015 02:12 PM

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Find the optimal ordering policy for the stochastic single-period model with a setup cost where the demand

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for 0 sfs 20 0 otherwise,

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Taking the derivative with respect to y y5 ...View the full answer

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