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In Operations Research, we build models to penalize the firm for its supply - demand mismatch. In the case of excessive inventory ( i .

In Operations Research, we build models to penalize the firm for its supply-demand
mismatch. In the case of excessive inventory (i.e. D <500), the firms incurs an overage
cost of 1 SGD per each unit of excess inventory. In the complementary case of inventory
shortage, the firms incurs an underage cost of 3 SGD per each unit of unmet demand. The
firms operational cost is the sum of its overage and underage cost.
Compute the expected operational cost incurred by the firm.

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