Optimal

Inventory Q

Average Profit at each location,

Without transshipment

Newsvendor

122.5

1530

With transshipments, thus

12

107.0

1660

18

112.3

1672

20

114.1

1674

22

115.9

1675

23.3

117.1

1676

26

119.4

1675

35

127.0

1661

40

130.9

1648