Given the Following Information and the Demand Probability Table, What

Given the following information and the demand probability table, what is the order policy for the Q-system?
The annual demand is 1800 units.The cost of placing an order is $100 while the cost of holding a unit for a year is $12.00.The cost of stocking out is $33.00.No lead time.
$$\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Daily } \\\text { Demand }\end{array} & 0 & 4 & 6 & 8 & 10 \\\hline \text { Probability } & 0.07 & 0.45 & 0.28 & 0.15 & 0.05 \\\hline\end{array}$$

Correct Answer:

Verified

Show Answer