Question: 31) Demand for a product with a unit ordering cost of $150 is 800 units per year, holding cost per unit per year is $10,

31) Demand for a product with a unit ordering cost of $150 is 800 units per year, holding cost per unit per year is $10, and backorder cost is estimated to be $20 per unit per year. What amount of savings, if any, would there be in total annual inventory cost by using planned shortages instead of a basic economic order quantity?

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