Question: Problem I-3. Please make an example that is similar to a problem on page 23 of Session 14. You should consider two types of demand

Problem I-3. Please make an example that is

Problem I-3. Please make an example that is similar to a problem on page 23 of Session 14. You should consider two types of demand distributions: 1) a discrete distribution and 2) a normal distribution. Answer the following questions. Note that you are allowed to make a few assumptions to simplify the calculation. (a) Find the unit overage cost and the unit underage cost. (b) Find the optimal order quantity. (c) Find the expected profit (or cost) with the optimal order quantity. Problem I-3. Please make an example that is similar to a problem on page 23 of Session 14. You should consider two types of demand distributions: 1) a discrete distribution and 2) a normal distribution. Answer the following questions. Note that you are allowed to make a few assumptions to simplify the calculation. (a) Find the unit overage cost and the unit underage cost. (b) Find the optimal order quantity. (c) Find the expected profit (or cost) with the optimal order quantity

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