Problem 6. Find the optimal ordering policy for the stochastic single-period model with a setup cost where the demand has the probability density function (Le-t/25, t20 0, t<0 and the costs are: H...
Problem 5. Find the optimal ordering policy for the stochastic single-period model with a setup cost where the demand has the probability density function fo() = {zo, Osts 20 10, otherwise and the costs are: Holding cost = $1 per item, Shortage cost = $3 per item, Setup cost = $1.50, Production cost = $2 per item. Assume pre-existing inventory I on hand.