Question: Consider the same system as in the previous problem, and focus on the case J = 2. Show how to implement the optimization algorithm (83.9)

Consider the same system as in the previous problem, and focus on the case J = 2. Show how to implement the optimization algorithm (83.9) using the arrays above: First, write down an explicit formula for C2(Y) in terms ofthe data (Tt~, P~). Then, given s~write down a formula for C1(y) in each oftwo cases, namely,y = SI ::; s~ andy = S1 > s~. (Use the equivalence between local and echelon base-stock policies.)

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