(Using RStudio)
Inventory control policy is concerned with determining reorder points (amount left in stock that triggers a restock) and reorder quantities to balance of cost of keeping inventory and the cost of missed demand The prescriptive analytics team has developed a rough equation giving the cost of a policy for a given reorder point and reorder quantity. For illustration, imagine the formula for cost is`50 +log10( 1/(point*quantity) * ( 19 + 1.3 *(point/10 - quantity/10)^4)/( 524 + 2 *quantity/10 - 15 *point/10)^2 )`
Thus, if point=30 and quantity=50, you'd find that the cost is 43.04517.
Use a nested for loop to consider all integer values of point from 1 to 200, and all integer values of quantity from 1 to 200.
What is the optimal policy, i.e., the vector c(point,quantity) which gives the minimum cost?