A retailer has to decide as to the optimum number of units to be stocked of certain items under the following condition. (a) Cost price in season is Rs 15 (b) Bargain price after season is Rs 9 (c)…

A retailer has to decide as to the optimum number of units to be stocked of certain items under the following condition. (a) Cost price in season is Rs 15 (b) Bargain price after season is Rs 9 (c) Cost of holding the item beyond season is Rs 2 (d) Selling price in season is Rs 20 The probability distribution of demand based on past data is as follows:Demanded units1213141516Probability0.200.200.250.200.15Determine the optimum stock level on the EMV criterion and the expected value.