Example 15.8 The Probability Distribution Of Monthly Sales Of A Certain Item Is As Follows: Monthly Sales, D: 0 1 2 3 4 5 6 Probability 0.05 0.30 0.27 0.20 0.10 0.06 : 0.02 The Cost Of Carrying Inventory Is Rs 10 Per Unit Per Month. The Current Policy Is To Maintain A Stock Of Four Items At The Beginning Of Each Month. Assuming That The Cost Of Shortage Is

 

(d).27.p Example 15.8 The probability distribution of monthly sales of a certain item is as follows: 1 3 4 5 6 Monthly sales, D: 0 2 Probability : 0.02 0.05 0.30 0.27 0.20 0.10 0.06 The cost of carrying inventory is Rs 10 per unit per month. The current policy is to maintain a stock of four items at the beginning of each month. Assuming that the cost of shortage is proportional to both s time and quantity short, obtain the imputed cost of shortage of one item for one time unit.