Question: uppose that a manager needs to order a component to satisfy next week s demand. The probability that there will be x ( integer )
uppose that a manager needs to order a component
to satisfy next weeks demand. The probability that there will be x integer
units of demand is where x
The manager can pay $ per unit to order some components from a regular
channel in advance. If it turns out that the amount is not sufficient to satisfy
all demands, the manager needs to place an expediting orders at $ per unit to
cover the shortage. Unused component can be sold in the secondhand market
at $ per unit. Determine
points The optimal number of units that the manager should order
from the regular channel;
points The expected number of units of expediting orders;
points The expected total purchase cost include both regular and
expediting orders;
points The expected salvage value of unused units sold in the second
hand market
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