This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Demands not satisfied are lost (not carried over to future periods) and if inventory exceeds the limit of 4 units in any period, then these excess units are sold off at a price (income not cost) of $25. Demand in each period is a random variable with distribution: 10% 1, 25% 2, 35% 3, and 30% 4. Solve this problem assuming that there is no initial inventory....
View Full Document
- Fall '10