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

3. A single product inventory system with the storage capacity of 2 units is replenished weekly using the following
policy: if there are 0 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 4n, where n is the number of units ordered during the week. The weekly storage cost is 03m, where
mis the number of units on hand at the beginning of the week (before any ordering takes place).
d
0
1
2
3
P(D =d)0.20.30.40.1
a) Find the long-run fraction of time that the system is out of stock (zero inventory).(15

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