Question: A company inventories two items. The relevant data are shown in the file P12_65.xlsx. Determine the optimal inventory policy if no shortages are allowed and

A company inventories two items. The relevant data are shown in the file P12_65.xlsx. Determine the optimal inventory policy if no shortages are allowed and if the average investment in inventory is not allowed to exceed $700. If this constraint could be relaxed by $1, by how much would the company’s annual costs decrease?

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