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HW Sol Due 12-6 Stochastic DP

# HW Sol Due 12-6 Stochastic DP - HW Due 12-6 Stochastic DP 4...

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HW Due 12-6 Stochastic DP 4. Consider a 2 period stochastic production model with a production limit of 5 units per period and an inventory carry over limit from period to period of 4 units. The production setup cost is \$18 (independent of the number produced excluding 0), each unit costs \$100, the holding cost is \$3 per unit per period based on out-going inventory , and unfilled demands are assessed a cost of \$200 per unit. 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. PROGRAM "file: prodstocP4.dpe" "allowing lost demand at \$200 per unit not satisfied" "note that backtracking the solution doesn't make sense" "therefore, you must print at least the optimal recursions" "or no output will be obtained at all" "production example solved in order 2, and 1" "0 = s1 -> x1 -> s2 -> x2 -> s3" DEFINITION

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