In Problem 15-21, suppose that the store wishes to extend the decision problem to a 2-day horizon.
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In Problem 15-21, suppose that the store wishes to extend the decision problem to a 2-day horizon. The alternatives for the second day depend on the demand in the first day. If demand on day 1 equals the amount stocked, the store will continue to order the same quantity for day 2; if it exceeds the amount stocked, the store can order any of the higher-level stocks; and if it is less than the amount stocked, the store can order any of the lower-level stocks. Develop the associated decision tree, and determine the optimal ordering strategy.
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