Daily Demand for a Product Is Described in the Table $\$ 10.00$

Essay

Daily demand for a product is described in the table below. Profit per unit sold is $\$ 10.00$ . Unmet demand costs are $\$ 5.00$ in goodwill. The demand is not carried forward. Excess stock is liquidated on a daily basis at a cost of $\$ 3.00$ per unit. That is, excess stock is not carried forward in stock. Orders have to be placed using a fixed policy of ordering $X$ number of units each day. Lead-time is 0 , but only one order can be placed each day. What should be the value of $\mathrm{X}$ in order to maximize profit? Try two "good" ordering policies (i.e. two order quantities), simulate the profit corresponding to the two policies for 10 days, and choose the best quantity.