A company has the following inventory policy: inventory is observed and when this is 2 less, 2 products are ordered. If inventory is 3 more products, it is not ordered. The probability of having 0 customers is 0.3, 1 customer 0.5 and 2 customers 0.2. The daily event series is: (1) the inventory is observed, (2) depending on the policy, the products are ordered, (3) the products arrive immediately, (4) finally the products are sold according to demand.

2.1 ¿ How many states best describe the system?

2.2 How many absorbing states are there?

 2.3 Calculate the steady-state probabilities 

2.4 If you have an ordering cost of $ 400 (regardless of the amount ordered) and an inventory cost of $ 50 / product, what is the expected cost from the policy?

Answer rating: 100% (QA)

21 The four possible states for the inventory correspond to the four possible outcomes of the daily ... View the full answer