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4) A perish Because t (x) varies a X P(X) The retaile daily profit You're req i) determine

4) A perish Because t (x) varies a X P(X) The retaile daily profit You're req i) determine

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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4) A perishable product is purchased by a retailer for #800 and sold at a price of #900. Because the product is perishable, it has no value if not sold on the first day. Daily demand (x) varies at random according to the following distribution: 12 0.35 15 0.05 X 10 11 13 14 0.05 0.20 0.20 0.15 P(X) The retailer wishes to determine the level to stock each day, so as to maximize expected daily profit. You're required to: i) determine what stock decision will result in the maximum expected daily profit.
Transcribed Image Text:4) A perishable product is purchased by a retailer for #800 and sold at a price of #900. Because the product is perishable, it has no value if not sold on the first day. Daily demand (x) varies at random according to the following distribution: 12 0.35 15 0.05 X 10 11 13 14 0.05 0.20 0.20 0.15 P(X) The retailer wishes to determine the level to stock each day, so as to maximize expected daily profit. You're required to: i) determine what stock decision will result in the maximum expected daily profit.
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