Demand for a certain type of electronic calculator

Reference no: EM131105248

The weekly demand for a certain type of electronic calculator is estimated to be

The unit cost of these calculators is $80. The holding cost is $0.70 per calculator remaining at the end of a week. The shortage cost is $2 per calculator of unsatisfied demand at the end of a week. Using a weekly discount factor of α = 0.998, find the optimal inventory policy for this infinite-period problem.

Reference no: EM131105248

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