Question: Consider the same question again. Suppose that instead of an auto manufacturer, you are managing the inventory of a retailer, where the implication of a

Consider the same question again. Suppose that instead of an auto manufacturer, you are
managing the inventory of a retailer, where the implication of a shortage is a unit of lost sale.
Assume all other parameters are the same: c = $1100, D =500 tons per day, K = $2250 per
order, i =0.25 $/unit/year. For what value of the unit shortage penalty, p, would you decide
to satisfy all demand using the EOQ policy?

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