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Unformatted text preview: x > 0 and time t < N , consider the dierence between the optimal price and what it would be if we had x + 1 units of inventory on hand. Call this the sensitivity of price to inventory. What is the maximal sensitivity, and at what x > 0 and t < N does this occur? Correlated Demands Do problem 4.7 from the textbook. Capacity Expansion Do problem 4.11 from the textbook. Item Decomposition Explain why an optimal itembased strategy as discussed in class results in an orderupto strategy for each echelon of the system....
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 Spring '10
 Bertsekas

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