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We control the inventory of a product over 3 time periods. The inventory capacity is 3 , and demand can take values 0 , 1

We control the inventory of a product over 3 time periods. The inventory capacity is 3, and demand can take values 0,1 or 2 with probabilities 0.25,0.5 and 0.25 respectively. For each unit sold we generate a revenue of $8 and for each unit ordered we incur a cost of $2. Every time we place an order we incur a fixed cost $4. Unit inventory holding cost is $1, and demand that is not satisfied is lost with no penalty cost. If the initial inventory level at the beginning of time period 1 is 0 units, what is the optimal total expected profit over the whole planning horizon?

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