Question: I am a retailer. Each week I see random demand, Dn , which I fill if I can. Past data indicatesthatP ( Dn = 0
I am a retailer. Each week I see random demand, Dn which I fill if I can. Past data indicatesthatPDn PDn PDn andPDn Demand that I cannot fill is backlogged. I pay $ per item per period I have on hand, and $ per item per period I have on backlog. I have a supplier in China with lead time weeks and unit purchasing cost $ and a supplier in Baku with lead time weeks and unit purchasing cost $ I will use a singleindex policy.
a Find the optimal basestock level if
b Find the optimal basestock level if
c Find the safety stock levels for the singleindex policies found in parts a and b
d Find the average singleperiod costs for the singleindex policies found in parts a and b Which one is better?
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