Question: . A pharmacy needs to decide on monthly procurement quantity of a critical yet a highly perishable drug that has a shelf - life of
A pharmacy needs to decide on monthly procurement quantity of a critical yet a highly perishable drug that has a
shelflife of just one month. The unit price of drug is Rs and its cost is Rs As per the historical data, the
monthly demand for the drug is random with a certain distribution. The details are given below. Since the drug is an
emergency drug, the associated hospital offered to reimburse Rs for each unit of drug left unsold. At the same
time, the store would be penalized Rs per unit by the hospital for any unmet demand.
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