Question: A facility operates in two phases: from 4 am till 4 pm is the manufacturing phase, and from 4 pm till 4 am is the

A facility operates in two phases: from 4am till 4pm is the manufacturing phase, and from 4pm till
4am is the packaging and shipping phase. Output of the manufacturing phase is uncertain during
one day of production 2 units will be produced 15% of the time, 1 unit 25% of the time and no units
60% of the time. At the end of the manufacturing phase, all produced units are moved to storage.
Storage has capacity for 3 units, and any units that do not fit (at 4pm at the end of manufacturing
phase) have to be scraped. 70% of the time there is demand for the product, in which case 1 unit of
product will be packaged and shipped during the second phase. Otherwise, nothing happens during
the second phase (facility does not have capacity to ship more than 1 unit per day).
Model the system as a Markov Chain. Define the states as the status of the storage at 4am, i.e., the
number of units stored before mafacturing starts.
i. List possible states.
ii. Find the probability that there will be 1 unit in storage tomorrow, given that there is noting in
storage today (this is transition probability from state 0 to state 1).
iii. Fill in the rest of the transition matrix.
iv. Given the Markov model, calculate the probability that the storage will be full the day after
tomorrow, if it is empty today

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