The probability density of demand of a certain item during a week to be: f(x) = 0.1, 0 x 10 The demand is assumed to occur with a uniform pattern over the week. The unit carrying cost of the item in inventory is Rs.2/week and the unit shortage cost is Rs.8/week. Determine the optimal order level of the inventory.

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A classic inventory problem Lets break it down step by step Step 1 Determine the expected demand The ... View the full answer