Which of the following is true about penalty, where D(t) is instantaneous demand at time t and R(t) is response at time t?
a) Penalty ∝ ∫ | R(t) * D(t) | dt
b) Penalty ∝ ∫ | D(t) + R(t) | dt
c) Penalty ∝ ∫ | D(t) – R(t) | dt
d) None of these
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Correct Answer is Penalty ∝ ∫ | D(t) – R(t) | dt (Option c).
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