Answer to Question #229568 in Combinatorics | Number Theory for Moses

Question

25/08/2021 08:59


three month order. Therefore, if Mackenzie's current order is less than Nomura has produced,

the excess production will be reprocessed and valued at $50 per pound.

The inventory decision in this problem is how much Nomura should produce given the costs

and the possible demands of 2000, 3000, and 4000 pounds. From historical data and an analysis

of Mackenzie's future demands, Nomura has assessed the probability distribution for demand


shown in the table below


Demand Probability


2000


3000

4000


0.20

0.50


0.30


(a) Develop a payoff table for the Nomura problem


(b) How many batches should Nomuru produce every three months? Use th