# Question: 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.

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.

## Answer to relevant Questions

Using the approximation for finding the optimal policy for the stochastic single-period model with a setup cost when demand has an exponential distribution, find this policy when and the costs are Holding cost = 40 cents per ...Every Saturday night a man plays poker at his home with the same group of friends. If he provides refreshments for the group (at an expected cost of $14) on any given Saturday night, the group will begin the following ...Reconsider Prob. 19.2-3. (a) Formulate a linear programming model for finding an optimal policy. Use the uniform random numbers in cells C13:C18 of Fig. 20.1 to generate six random observations for each of the following situations. (a) Throwing an unbiased coin. (b) A baseball pitcher who throws a strike 60 percent of ...A company provides its three employees with health insurance under a group plan. For each employee, the probability of incurring medical expenses during a year is 0.9, so the number of employees incurring medical expenses ...Post your question