Question: Consider the coffeehouse discussed in problem 10. Suppose that its setup cost for or-dering was really only $15. Determine the error made in calculating the
Consider the coffeehouse discussed in problem 10. Suppose that its setup cost for or-dering was really only $15. Determine the error made in calculating the annual cost of holding and setup incurred as a result of using the wrong value of K. (Note that this im-plies that its current order policy is suboptimal.)
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