Find the optimal inventory policy for the following two-period model by using a discount factor of
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Find the optimal inventory policy for the following two-period model by using a discount factor of 0.9. The demand D has the probability density function
D()
for 0 otherwise,
and the costs are Holding cost $0.25 per item, Shortage cost $2 per item, Purchase price $1 per item.
Stock left over at the end of the final period is salvaged for $1 per item, and shortages remaining at this time are met by purchasing the needed items at $1 per item.
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Related Book For
Introduction To Operations Research
ISBN: 9780072321692
7th Edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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