There are two items with cost of surplus c1, cost of shortage c2, and discrete probability distribution for each item request as follows: Item 1 c1 ¼ $2; c2 ¼ $130 f1ðrÞ ¼ 8 >< >: 0123 0:4 0:3 0:2 0:1 Item 2 c1 ¼ $5; c2 ¼ $60 f2ðrÞ ¼ 8 >< >: 012 0:2 0:5 0:3 What is the optimal inventory level for the two items?