Question: e - stock level for gaskets? 9 . 3 ( Stocking Latex Gloves ) A university health clinic uses exactly 4 boxes of latex gloves

e-stock level for gaskets?
9.3(Stocking Latex Gloves) A university health clinic uses exactly 4 boxes of latex
gloves per week and orders gloves once per week. It costs the clinic $0.10 per week to
hold one box of gloves in inventory. If the clinic runs out of gloves before the end of the
week, they must buy more gloves from a local pharmacy at a cost that is $0.50 greater per
box than the cost their normal supplier charges.
The clinics normal supplier of gloves is quite unreliable. In any period, there is a
50% chance that the supplier is disrupted and cannot ship any gloves. This probability is
independent of whether the supplier was disrupted in the previous period; that is,\alpha =\beta =
0.5. What is the optimal base-stock level for the clinic to use when ordering gloves?

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