This is a simplified inventory problem. Suppose that it costs c dollars to stock an item and that the item sells for s dollars. Suppose that the number of items that will be asked for by customers is a random variable with the frequency function p(k). Find a rule for the number of items that should be stocked in order to maximize the expected income. (Hint: Consider the difference of successive terms.)

A First Course in Probability (10th Edition)
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Chapter1: Combinatorial Analysis
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9. This is a simplified inventory problem. Suppose that it costs c dollars to stock an
item and that the item sells for s dollars. Suppose that the number of items that
will be asked for by customers is a random variable with the frequency function
p(k). Find a rule for the number of items that should be stocked in order to
maximize the expected income. (Hint: Consider the difference of successive
terms.)

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