In (Q, R) system, we define n(R) as the expected number of stock-outs incurred in a cycle. Let p denote the penalty cost per unit of unsatisfied demand. is the demand mean per unit time and Q is the lot size (order quantity). The term Qpn(R) represents the average annual cost the average setup cost per unit time the average shortage cost per unit time the total expected shortages cost per cycle Question 6 1 pts In the case of all-units discounts, the optimization procedure requires searching for the lowest point on a discontinuous annual cost curve. True False Question 7 1 pts In the derivation of the Newsvendor model, we assume that the demand D is a discrete nonnegative random variable. True False