Suppose retailer demand each period was normally, Operation Management

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Suppose retailer demand each period was normally

Suppose retailer demand each period was Normally distributed with average of 8 and standard deviation of 2. Backorders cost $2 per unit per period and excess inventory costs $1 per unit per period. The leadtime demand was 4 periods, which means that leadtime demand was Normally distributed with mean of 32 and standard deviation of 4 (LD~N(32, 42 )). What would the optimal basestock policy be?

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Operation Management: Suppose retailer demand each period was normally

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