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Assume the owner wishes to consider her decision problem over a two day period. Her substitute for the second day are determined as follows. If the demand in day one is equal to the amount stocked then she will continue to order the few quantity on the second day. Otherwise if the demand surpasses the amount stocked, then she will have the options to order higher levels of stock on the second day. Lastly if day 1's demand is less than the amount stocked then she will have the options to order any of the lower levels of stock for the second day. Express the problem as a decision tree as well as find the optimal solution using the cost data given
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