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A Simple Inventory Example Consider a retailer that sells ski-jackets. The sales season is very short and the items have to be ordered in advance. The demand for green jackets are uniformly distributed between 0 and 100. Assume you order Q=40, 50, or 80 jackets in advance, what is the expected sales in each case?
A Simple Inventory Example Consider a retailer that sells ski-jackets. The sales season is very short and the items have to be ordered in advance. What if the probability distribution of the demand for green jackets were more complicated, as the demand here is actually a function of the weather? Assume you order Q=40, 50, or 80 jackets in advance, what is the expected sales in each case?
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