ISYE 3232C Fall 2015 Quiz 2

I,
, do swear that I abide by the Georgia Tech
Honor Code. I understand that any honor code violation will result in a zero for
this test and one letter grade reduction.
Signature:
1. (10) Explain (s, S) policy when (s, S) = (65, 100) if the initial inventory level
is x = 0, 10, 50, 75, 150.
Solution: If initial inventory level x < s, order 100 x; otherwise order nothing. Specifically,
(a) (2) When x = 0, order 100
(b) (2) When x = 10, order 90
(c) (2) When x = 50, order 50
(d) (2) When x = 75, order nothing
(e) (2) When x = 150, order nothing