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write all step clearly please. 2. Consider your exam problem but now your objective is to minimize the expected infinite horizon discounted cost with discount
write all step clearly please.
2. Consider your exam problem but now your objective is to minimize the expected infinite horizon discounted cost with discount factor =0.8. A storage depot keeps production items in stock. The depot can hold at most 2 items. At the end of each week the inventory level (i.e. the number of items in stock) is monitored and a decision is made about the number of new items to be ordered from the production facility. An order that is placed on Friday is delivered on Monday by 7.30am. The cost of an order consists of a fixed amount of $100 and an additional $100 per ordered item. Requests for items arrive randomly at the storage depot; with probability 1/4 there is no demand during the week, with probability 1/2 exactly one item is requested and with probability 1/4 two items. If the weekly demand exceeds the inventory stock, additional items are delivered directly from the production facility at the expense of $300 per item. Use value iteration to find the optimal policyStep by Step Solution
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