The daily demand for a popular CD in a music store is approximately N(200, 20). The cost

Question:

The daily demand for a popular CD in a music store is approximately N(200, 20). The cost of keeping the CD on the shelves is $.04 per disc per day. It costs the store $100 to place a new order. There is a 7-day lead time for delivery. Determine the store’s optimal inventory policy given that the store wishes to limit the probability of shortage to at most .02.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: