Question: For a continuous inventory control system, what is the optimal order quantity if shortages are allowed and lead time is greater than zero? Derive the

For a continuous inventory control system, what is the optimal order quantity if shortages are allowed and lead time is greater than zero?

Derive the EOQ formula using the below parameters:

annual demand = D, max shortage = S, lead time = L, demand rate = d, production rate = p, (p>d) carrying cost per unit per year = , ordering cost per order = , shortage cost per unit per year =

thank you :))

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