Old MathJax webview

Old MathJax webview

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EXAMPLE 12.6-8 A fish stall sells a variety of fish at the rate of 5 per kg on the day of the catch. If the stall fails to sell the catchc1 on the same day, it pays for storage at the rate of 0.30 per kg and the price fetched is 4.50 per kg on the next day. Past reconds show that there is an unlimited demand for fish one day old. The problem is to ascertain how much fish should be procured even day so that the total expected cost is minimum. It has been found from the past records that the daily demand follows an exponential distribution with Problemh60 A generator on board a naval ship has a critical component. In the event this component fails, it needs to be replaced with a spare one held on board. The commander of the ship needs to determine the number of spares of this component he would need to hold on board at the start of their yearlong "al-sea" period. One spare component costs $15,000. Nonavailability of the spare component on board would necessitate the commander to request a helicopter to airlift a replacement from the nearest onshore depot. The cost of this exercise would be $100,000. The component takes up a large space on board the ship, and the holding costs and the cost of nonusage is approximately $50,000. The observed failure rate of this component is four failures per year. 660 CF is the cumulative flag; it is set to TRUE for obtaining cumulative probability of the Poisson distribution. For example, consider an item whose demand follows a Poisson distribution with a mean of 5 units. The probability that the demand in any period would be exactly 2 units is