Question: Question 1 : The following data is for an item purchased for resale by a retail store: Annual demand rate, constant: 1 0 , 0

Question 1: The following data is for an item purchased for resale by a retail store:
Annual demand rate, constant: 10,000 units
Fixed cost of placing an order: 40TL
Unit variable cost: 10TL
Annual inventory carrying cost rate: 0.20 TL per unit
Annual backorder cost rate: 0.40 TL per unit
The entire lot is delivered in one shipment and all shortages are backordered.
a. Calculate the optimal order quantity.
b. Under the optimal policy, what will be the maximum inventory level? The average on-hand inventory level? The maximum backorder level? The average backorder level?
c. Calculate the optimal average system cost.
d. What fraction of total demand will be delivered late?
Question 1: The following data is for an item purchased for

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