17-02-02 - UF-ESI-632117-02-02.xmcdpage 1 of 217.2.2You are...

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Unformatted text preview: UF-ESI-632117-02-02.xmcdpage 1 of 217.2.2You are a retailer considering your inventory system in which the sequence of events duringeach sales period is as follows.(1) As a retailer, you observe your inventory level iat the beginning of the period as one of thefollowing values:i0 4..:=i1234=(2) You order units from your wholesaler for immediate delivery according to this formula:oiif i14i-, , ():=In other words, you will order and immediately receive these numbers of units depending uponthese current inventory values:augment i oi, ( )0 4()1 3()2 0()3 0()4 0()=(3) With conditional probabilityp'13:=retail customers will demand any one of the three discrete quantities ofr0 2..:=dr r:=d0 1 2()=(4) You observe the inventory level at the beginning of the next period.Define a period's state to be the period's beginning inventory level i.Determine the transition matrix that could be used to model this inventory system as a Markovchain....
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This note was uploaded on 05/12/2010 for the course ESI 6321 taught by Professor Josephgeunes during the Spring '07 term at University of Florida.

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