Question: Example 14.9 A commodity is to be supplied at a constant rate of 200 units per day. Supplies of any amount can be obtained at

Example 14.9 A commodity is to be supplied at a

Example 14.9 A commodity is to be supplied at a constant rate of 200 units per day. Supplies of any amount can be obtained at any required time, but each ordering costs Rs 50; cost of holding the commodity in inventory is Rs 2 per unit per day while the delay in the supply of the item induces a penalty of Rs 10 per unit per day. Find the optimal policy (Q.)where is the reorder cycle period and Q is the inventory after reorder. What would be the best policy to adopt if the penalty cost becomes infinite

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