Determine the average inventory level on hand of the following inventory cycles. Q is the order quantity,
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Determine the average inventory level on hand of the following inventory cycles. Q is the order quantity, demand rate is D, and s represents the maximum backorder level. Assuming that the fixed ordering cost is A, holding cost is H $/unit/yea?r and backordering one unit is p $/unit/year develop the total inventory cost function TC(Q,s). Identify the optimal Q and optimal s.
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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