The unit holding cost in a single-period inventory situation is $1. If the order quantity is 4
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The unit holding cost in a single-period inventory situation is $1. If the order quantity is 4 units, find the permissible range of the unit penalty cost implied by the optimal conditions. Assume that the demand occurs instantaneously at the start of the period and that the pdf of demand is as follows:
D 0 1 2 3 4 5 6 7 8 f1D2 .05 .1 .1 .2 .25 .15 .05 .05 .05
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