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16. A store sells a special item whose daily demand can be described by the following pdf: Daily demand, D 01 2 3 PLDI The

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16. A store sells a special item whose daily demand can be described by the following pdf: Daily demand, D 01 2 3 PLDI The store, using daily review, is comparing two ordering policies: (1) Order up to 3 units if the stock level is less than 2; else do not order. (2) Order 3 units if the stock level is zero; else do not order. The fixed ordering cost per shipment is $300, and the cost of holding excess units per unit per day is $3. Immediate delivery is expected. (a) Which policy should the store adopt to minimize the total expected daily cost of ordering and holding? For the two policies, compare the average number of days between successive inventory depletions. (b)

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