Question: Using the approximation for finding the optimal policy for the

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 item,
Shortage cost = $1.50 per item,
Purchase price = $1 per item,
Setup cost = $10.
Show your work, and then check your answer by using the corresponding Excel template in your OR Courseware.

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  • CreatedSeptember 22, 2015
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