Question: 3 . A single product inventory system with the storage capacity of 2 units is replenished weekly using the following policy: if there are 0
A single product inventory system with the storage capacity of units is replenished weekly using the following
policy: if there are units in stock, order up to the storage capacity; else, do not order. Weekly demands D are iid
rvs with the following pmf Any unmet demand is lost. Assume zero order replenishment time. For any week, the
ordering cost is n where n is the number of units ordered during the week. The weekly storage cost is m where
mis the number of units on hand at the beginning of the week before any ordering takes place
d
PD d
a Find the longrun fraction of time that the system is out of stock zero inventory
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