Posted by **John** on Thursday, February 26, 2009 at 1:41pm.

weekly demand data have been analyzed yielding the probability mass fnc. for weekly demad D as follows

Pr{D=0}=0.05, Pr{D=1}=0.1,

Pr{D=2}=0.2,Pr{D=3}=0.4,

Pr{D=4}=0.1,Pr{D=5}=0.1,Pr{D=6}=0.05.

Let X be the Markov chain where Xn is the inventory at the end of week n.

a) find transition matrix for X.

b) if at the end of week 1 there are 5 items in inventory, what is the probability that there will be 5 items in inventory at the end of week 3?

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