Consider a two-period probabilistic inventory model in which the demand is backlogged, and orders are received with zero delivery lag. The demand pdf per period is uniform between 0 and 10, and the cost parameters are given as
Unit selling price = $2
Unit purchase price = $1
Unit holding cost per month = $.10
Unit penalty cost per month = $3
Discount factor = .8
Find the optimal inventory policy for the two periods, assuming that the initial inventory
for period 1 is zero.