Question: Question 2: In the model for backorders, replace the backorder cost per unit and time unit, b1, by a backorder cost per unit, b2. This

Question 2: In the model for backorders, replace the backorder cost per unit and time unit, b1, by a backorder cost per unit, b2. This means that there is no difference between long and short delays. Show that for a given Ox <1 the optimal costs can be expressed as: C = V(2Adh)(1 - x) + b2dx.

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