Question: Derive the annual average total cost G ( Q , s ) expression for a EOQ model with finite production rate P , constant demand

Derive the annual average total cost G(Q,s) expression for a EOQ model with finite production rate P, constant demand rate lambda, shortage cost/backorder cost Cs per unit cost h per unit. Also, derive that the minimum order quantity is Q*= sqrt((2K(Lambda)(h+Cs))/(hCs(1-lambda/P))) and the minimum backorder quantity is s=(Q*h(1-lambda/P))/(h+Cs) where k is the fixed set up cost.(Hint: You need to take the partial derivative of the average annual cost with respect to Q
and s
and solve them to get the minimum order quantity and the minimum back order quantity)

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