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are as given in the table below. Usage in a day ( No . of units ) No . of days on which this usage
are as given in the table below.
Usage in a day No of units No of days on which this usage occurred
Total
The item is procured at Rs per unit. But, if it is not used during the day, it gets deteriorated and can be sold at a salvage price of only Rs the next day. However, if the item is not available in the required quantity on any day, it has to be procured from elsewhere at a premium of Rs per unit. What should be the optimal stocking policy for this item.
The following table contains figures on the monthly volume and unit costs fo
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