Question

Use dynamic programming (graphical approach) to find the optimal inventory policy and minimum total cost for the following four-month deterministic inventory problem. The cost and demand data are provided in the table below. Note that the setup cost, unit production cost, and unit holding cost change from period to period. The initial inventory is zero, but it is required to have a final inventory of 5 units at the end of the fourth month. In case of a tie, provide all optimal policies. Period Demand (month i) $r_i$ (in units) Setup cost $K_i$ (in S/order) Unit production cost $c_i$ (in S/order) Unit holding cost $h_i$ (in S/unit/month) 1 5 12 5 2 2 10 10 5 3 3 9 10 4 4 7 12 6 3

          Use dynamic programming (graphical approach) to find the optimal inventory policy and minimum total cost for
the following four-month deterministic inventory problem. The cost and demand data are provided in the table
below. Note that the setup cost, unit production cost, and unit holding cost change from period to period. The
initial inventory is zero, but it is required to have a final inventory of 5 units at the end of the fourth month. In
case of a tie, provide all optimal policies.
Period
Demand
(month i) $r_i$ (in units)
Setup cost $K_i$
(in S/order)
Unit production
cost $c_i$ (in S/order)
Unit holding cost $h_i$
(in S/unit/month)
1
5
12
5
2
2
10
10
5
3
3
9
10
4
4
7
12
6
3

Use dynamic programming (graphical approach) to find the optimal inventory policy and minimum total cost for
the following four-month deterministic inventory problem. The cost and demand data are provided in the table
below. Note that the setup cost, unit production cost, and unit holding cost change from period to period. The
initial inventory is zero, but it is required to have a final inventory of 5 units at the end of the fourth month. In
case of a tie, provide all optimal policies.
Period
Demand
(month i) ri (in units)
Setup cost Ki
(in S/order)
Unit production
cost ci (in S/order)
Unit holding cost hi
(in S/unit/month)
1
5
12
5
2
2
10
10
5
3
3
9
10
4
4
7
12
6
3

Added by Kimberly M.

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