{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# 17-02-02 - UF-ESI-6321.xmcd page 1 of 2 17.2.2 You are a...

This preview shows pages 1–2. Sign up to view the full content.

UF-ESI-6321 17-02-02.xmcd page 1 of 2 17.2.2 You are a retailer considering your inventory system in which the sequence of events during each sales period is as follows. (1) As a retailer, you observe your inventory level i at the beginning of the period as one of the following values: i 0 4 .. := i 0 1 2 3 4 = (2) You order units from your wholesaler for immediate delivery according to this formula: o i if i 1 4 i - , 0 , ( ) := In other words, you will order and immediately receive these numbers of units depending upon these current inventory values: augment i o i , ( ) 0 4 ( ) 1 3 ( ) 2 0 ( ) 3 0 ( ) 4 0 ( ) = (3) With conditional probability p' 1 3 := retail customers will demand any one of the three discrete quantities of r 0 2 .. := d r ⟨⟩ r := d 0 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 Markov chain.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}