Chapter 12.5, Problem 19P

Summary Introduction

To use: A probability argument to show the reason why $Q-1$ and $Q+1$ are worse than $Q$ in terms of the expected cost.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.