Question: Let K , lambda , h , and p be the setup and order cost, annual demand, annual holding cost per unit and, annual

Let K,\lambda , h, and p be the setup and order cost, annual demand, annual holding cost per unit and, annual backorder cost per unit, respectively. Show that order quantity Q and maximum inventory level H minimizing the total annual cost can be calculated using the following formulas: Q*= EOQh+p/p
H*= EOQp/h+p
EOQ =2K\lambda /h

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