Consider each change to the monetary inputs (the purchase cost, the selling price, and the salvage price) one at a time in Example 13.6. For each such change, either up or down, describe how the cost...


Consider each change to the monetary inputs (the purchase cost, the selling price, and the salvage price) one at a time in Example 13.6. For each such change, either up or down, describe how the cost of understocking and the cost of overstocking change, how the critical fractile changes, and how the optimal order quantity changes. Are these changes all intuitive?



May 25, 2022
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