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Facing random demand at 1 or more demand points,
we have 1 or more inventory sites at which we
can place inventory (or think of it as capacity) in advance,
say before the big Christmas selling season.
Only after we have made our inventory position decisions
do we see the demands. There is
a cost C0(i) for installing each unit of inventory at i,
a cost C(i,j) of satisfying a unit of demand at j from i.
How much inventory should we position where? - and
when demand occurs, how much should we transfer from where to where?;