Find the optimal ordering policy for the stochastic single period model
Find the optimal ordering policy for the stochastic single-period model with a setup cost where the demand has the probability density function
and the costs are
Holding cost = $1 per item,
Shortage cost = $3 per item,
Setup cost = $1.50,
Production cost = $2 per item.
Show your work, and then check your answer by using the corresponding Excel template in your OR Courseware.
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