3.4. Consider the inventory model of Section 3.1. Suppose that S = 3 and that the probability...

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3.4. Consider the inventory model of Section 3.1. Suppose that S = 3 and that the probability distribution for demand is Pr{6 = 01 = 0.1, Pr{ = 1) = 0.4, Pr{ = 21 = 0.3, and Pr{ = 3) = 0.2. Set up the corresponding transition probability matrix for the end-of-period inventory level X,,.

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An Introduction To Stochastic Modeling

ISBN: 9780126848878

3rd Edition

Authors: Samuel Karlin, Howard M. Taylor

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