The daily demand for a product in a shop can assume one of the following
values: 100, 200, or 300 items with probabilities 0.2, 0.5 and 0.3. The owner of the store is thus limiting the alternatives to stocking one of the indicated three levels. If the owner stocks more that it can be sold in the same day the remaining items must be disposed at a discount price of 50 cents per item. Assume that the owner pays 80 cents per item and sells it for 120 cents, find the optimal stock level.