A milk man buys milk at K10 per litre and sells it at K12 if sold on the same day; if not, it can be sold at K9 per litre the next day. Demand of milk lies between 45 litres and 60 litres per day and its probabilities are uniformly distributed over this demand. If each day’s demand is independent of the previous day’s demand, how many litres should be ordered every day?

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(b)
A milk man buys milk at K10 per litre and sells it at K12 if sold on the same day; if not, it
can be sold at K9 per litre the next day. Demand of milk lies between 45 litres and 60 litres
per day and its probabilities are uniformly distributed over this demand. If each day’s
demand is independent of the previous day’s demand, how many litres should be ordered
every day?

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