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The production process is as follows. Initially, the company has 0 trucks in their garage, which has a maximum capacity of 3 trucks per season.
The production process is as follows. Initially, the company has trucks in their garage, which has a maximum capacity of trucks per season. Since the production is timeconsuming, the company can produce in trucks each season before the demand is revealed. The production has a fixed cost of $k and a variable cost of $k per truck in any season. After the production occurs, the demand level becomes known. Each available truck in the garage is sold for $k units. All unsold trucks in spring or summer are kept for the next season with $k of holding cost per truck per season. All extra trucks at the end of the fall are sold for only $k
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