Note—Note on “Optimal Ordering Quantity to Realize a Pre-Determined Level of Profit”

Published Online:https://doi.org/10.1287/mnsc.29.4.512

In this note we consider the one-period inventory model in which it is required to determine the order quantity which maximizes the probability of realizing a predetermined level of profit R. We give a condition for determining the optimal order quantity and provide explicit expressions for the optimal order quantity in three special cases.

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