A supplier of high-fidelity receiver kits

Reference no: EM131105231

A supplier of high-fidelity receiver kits is interested in using an optimal inventory policy. The distribution of demand per month is uniform between 2,000 and 3,000 kits. The supplier's cost for each kit is $150. The holding cost is estimated to be $2 per kit remaining at the end of a month, and the shortage cost is $30 per kit of unsatisfied demand at the end of a month. Using a monthly discount factor of α = 0.99, find the optimal inventory policy for this infinite-period problem.

Reference no: EM131105231

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