Question: A 10-m 3 compartment is available for storing three items. The volumes needed to store 1 unit of items 1, 2, and 3 are 2,

A 10-m3 compartment is available for storing three items. The volumes needed to store 1 unit of items 1, 2, and 3 are 2, 1, and 3m3, respectively. The probabilistic demand for the items is specified in the following table:No. of units 1 2 234 4 Item 1 5599 .5 .5

The shortage costs per unit for items 1, 2, and 3 are $8, $10, and $15, respectively. How many units of each item should be held in the compartment?

No. of units 1 2 234 4 Item 1 5599 .5 .5 .0 .0 Probability of demand Item 2 3421 Item 3 .3 .2 .5 .0

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