How do your answers to part a of the previous problem change if, instead of incurring a $40 penalty cost for each shortage, the store has a service level requirement of meeting 95% of all customer...


How do your answers to part a of the previous problem change if, instead of incurring a $40 penalty cost for each shortage, the store has a service level requirement of meeting 95% of all customer demands on time? In each case (L known with certainty and L random) what penalty cost p is this service level requirement equivalent to?



May 25, 2022
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