Question: Equation (12.4) shows the optimal order quantity for the no-shortage model. Calculus can also be used to find the optimal order quantity and optimal maximum

Equation (12.4) shows the optimal order quantity for the no-shortage model. Calculus can also be used to find the optimal order quantity and optimal maximum backlog for the EOQ model with shortages allowed. The optimal order quantity is Q*SQRT((s + ic)/(ic + sp/(s + p))) where Q is the value from Equation (12.4). Then the optimal maximum backlog is the optimal order quantity multiplied by s/(s + p). Verify that these optimal values from calculus agree with the values found by Solver in Example 12.3.

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