Question: 3)In a large company, orders are generated at a remote facility and filled from stock held in a warehouse. The logistics manager may delay shipments

3)In a large company, orders are generated at a
3)In a large company, orders are generated at a remote facility and filled from stock held in a warehouse. The logistics manager may delay shipments from the warehouse to the remote facility to take advantage of quantity shipping discounts, however, if orders are kept too long, delay costs will build up. The logistics manager seeks a policy for combining orders to minimize shipping and holding costs. Let p_denote the probability that the total weight of orders arriving in a day equals x. Each evening the shipper can either ship all accumulated orders or decide to delay shipment until some time in the future. Orders are shipped by common carrier (truck, rail or air). Common carrier freight rates contain a parameter MWT which represents the minimum weight of a shipment which qualifies for a volume discount. Shipments of orders of weight less than MWT costs , per kg, while shipments for weights greater than or equal to MWT cost _per kg. Of course, ,

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