Question: Suppose the EOQ solution for a product ordered for a supplier is Q * = 2 0 0 . Suppose Maty wants to make it
Suppose the EOQ solution for a product ordered for a supplier is Q Suppose Maty wants to make it inhouse, which changes the nature of the problem: Now there is a constant production rate, P which must be accounted for, because replenishment of stock is no longer instantaneous. Assuming all other parameters stay the same. In the case where the inhouse production is idle for of the time, what is the new optimal order quantity?
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