Question: A manager is controlling an inventory using a planned backorders model. Right now the optimal order quantity is determined from a critical ratio of 0
A manager is controlling an inventory using a planned backorders model. Right now the optimal order quantity is determined from a critical ratio of The manager believes that the ratio may be higher, but is unsure what does a ratio closer to mean, and how it would affect the inventory control. Which of the following statements isare true? As the critical ratio approaches that is as the value increases from to very close to then
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