A supplier of high-fidelity receiver kits is interested in using an optimal inventory policy. The distribution of
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A supplier of high-fidelity receiver kits is interested in using an optimal inventory policy. The distribution of demand per month is uniform between 2,000 and 3,000 kits. The supplier’s cost for each kit is $150. The holding cost is estimated to be $2 per kit remaining at the end of a month, and the shortage cost is $30 per kit of unsatisfied demand at the end of a month. Using a monthly discount factor of 0.99, find the optimal inventory policy for this infinite-period problem.
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Introduction To Operations Research
ISBN: 9780072321692
7th Edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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