Unformatted text preview: (b) The expected inventory cost per month as a function of the state of the system and the decision alternative. (c) The optimal ordering policy over the next 3 months. Question 2) When I borrow a book from the BU library, I usually try to return it after one week. Depending on the length of the book and my free time, there is a 30% chance that I may keep it for another week. If I have had the book for two weeks, there is a 10% chance that I ’ ll keep it for an additional week. Under no condition do I keep it for more than three weeks. (a) Express the situation as a Markov chain. (b) Determine the average number of weeks I keep the book before returning it to the library....
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- Spring '09
- Operations Research, Probability theory, maximum stock level, optimal ordering policy, following probability density, STOCHASTIC MODELS QUIZ