Question: Given a uniform demand distribution in the range 1 0 0 , 1 3 0 , the sale price per unit is $ 1 6
Given a uniform demand distribution in the range the sale price per unit is $ the cost
per unit is $ and the salvage value per unit is $ If a contract is signed with the supplier, the
cost per unit will be reduced to $ and unsold units can be bought back at $ per unit. The
probability density function for the demand is
a Calculate the expected cost and write down the expected cost function.
b Determine the optimal order quantity
c What is the percentile of the demand at the optimal order quantity
PLEASE ANSWER DETAILED, ESPECCIALY DERIVATIVE PARTS.
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