The demand for an item during a single period occurs instantaneously at the start of the period.

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The demand for an item during a single period occurs instantaneously at the start of the period. The associated pdf is uniform between 10 and 15 units. Because of the difficulty in estimating the cost parameters, the order quantity is determined such that the probability of either surplus or shortage does not exceed .1.

(a) Show that the two conditions cannot be satisfied simultaneously.

(b) Under what restriction will the two conditions be satisfied simultaneously?

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