Question: For the basic EOQ model, we assumed that all costs are known. However, we may make errors in forecast. Suppose that we approximate an actual

For the basic EOQ model, we assumed that all costs are known. However, we may make errors in forecast. Suppose that we approximate an actual cost of RC by RC (1 E1), and a holding cost of HC by HC (1 E2) then we can simplify the increase of variable cost as following

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