Solve Prob. 19.7-3 for a two-period model, assuming no salvage value, no backlogging at the end of the second period, and no discounting Prob. 19.7-3

Find the optimal inventory policy for the following two-period model by using a discount factor of α = 0.9. The demand D has the probability density function

Stock left over at the end of the final period is salvaged for $1 per item, and shortages remaining at this time are met by purchasing the needed items at $1 per item.