In the optimal decision rule using marginal analysis for the single period model, we will stock an additional unit as long as the probability of selling one or less unit is less than the ratio ML/(ML + MP)where ML is marginal loss and MP is marginal profit.

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In the optimal decision rule using marginal analysis for the single period model, we will stock an additional unit as long as the probability of selling that unit is greater than the ratio ML/(ML + MP), where ML is the marginal loss and MP is the marginal profit.

In the Optimal Decision Rule Using Marginal Analysis for the Single