Exercise for
Uncertain Demand

In a given
period demand for an item is equally likely to be any value between
100 and 199
units. Each unit of the item costs 75 and can be sold for 100. At
the end of the
period all unsold stock is passed to a recycler who pays 25 a
unit. How many units would you buy for
the period?

Exercise for
Uncertain DemandIn a given
period demand for an item is equally likely to be any value between100 and 199
units. Each unit of the item costs 75 and can be sold for 100. Atthe end of the
period all unsold stock is passed to a recycler who pays 25 aunit. How many units would you buy for
the period?