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Question 2 1 pts (20 pts) A small distributor faces the following demand for

Question: Question 2 1 pts (20 pts) A small distributor faces the following demand for its deluxe product: Prob(D = 0) = . Prob(D = 1)=1, Prob(D=2) – Prob(D-3) = The manager has the following ordering policy: if at the end of any week there are no products left, he orders 3, if there is one product left he orders two and if he sees more than one product in inventory

Show transcribed image textAnswer:— The pr…View the full answerTranscribed image text: Question 2 1 pts (20 pts) A small distributor faces the following demand for its deluxe product: Prob(D = 0) = . Prob(D = 1)=1, Prob(D=2) – Prob(D-3) = The manager has the following ordering policy: if at the end of any week there are no products left, he orders 3, if there is one product left he orders two and if he sees more than one product in inventory he does not place an order. Orders that are placed at the end of any week arrive at the beginning of the next week. In your document: A. Express the situation as a Markov chain, by very clearly defining the variable, states and transition times B. Write the one-step transition matrix C. The manager thinks that at the end of this week (call it week 1) there will be 2 products in inventory with probability2, zero products in inventory with probability 0.7 and one product in inventory with probability 0.1. Write the distribution of products in inventory at the end of week 3 In the next space, write the probability of having no inventory at the end of week 3

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