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StarTech is an e-commerce company that sells electronic products. You are asked to determine the optimal ordering policy for one of its popular tablets, i.e.,
StarTech is an e-commerce company that sells electronic products. You are asked to determine the optimal ordering policy for one of its popular tablets, i.e., WarpSpeed tablet. The weekly demand for this tablet is normally distributed with a mean of 75 tablets and standard deviation of 10 tablets. The company follows a periodic-review base-stock inventory policy: it reviews its inventory and places an order at the beginning of each week. StarTech buys tablets from its supplier GalaxyTech, and the purchasing cost of each tablet is $200. The annual cost of holding a tablet in the warehouse is equal to 30% of its purchasing cost. It takes 2 weeks to receive a delivery from GalaxyTech
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