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The monthly forecast of demand for a product is provided below (i.e., a density and distribution function): If a company purchases a product in advance
The monthly forecast of demand for a product is provided below (i.e., a density and distribution function): If a company purchases a product in advance and doesn't actually need it, then the company will store it until it can be If a company purchases a product in advance and doesn't actually need it, then the company will store it until it can be sold. The expected extra storage cost is $500 per product. For example, if their needs are for 2 products but they advanced purchased 3 , then they incur a $500 charge for the 1 container that requires storage. Product purchased on the spot market (after they learn their needs) are expected to cost $3000 per product. For example, the company may advance purchase 1 product but discover that they need 3 , in which case the company would purchase an additional 2 products at $3000 each. How many products should the company advance purchase to minimize their costs? (report your answer as an integer)
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