iv) You lose a sale if you otherwise would have sold more than you have in stock.
So only case is if you have one in stock and would have otherwise sold 2.
(if you start with 2 or more and you sell 2 or less you always have enough stock, ditto if you sell none in any event)
Answer is long term probability of having 1 snake on the day times the probability of selling 2.
v) Same thing as earlier but with different transition matrix
vi) general logic in report is good enough I think so you need to ask more specif questions if it doesn't make sense.
vii) just compare costs of restocking plus lost sales under two scenarios (if you restock with less than 2 at end of day you never lose sales no just higher restocking fee) and identify what conditions minimize costs
Last edited by a moderator: Apr 2, 2011