Question: Suppose we have found the optimal ( R , S ) policy for the back - ordered case and that S = 5 0 .

Suppose we have found the optimal

(R, S)

policy for the back

-

ordered case and that

S = 50 .

Please specify the case in which the optimal

S

for the lost sales case has

S > 50

provided that review period, lead time, expected annual demand, and the standard deviation of the annual demand, inventory holding cost stay the same.

Suppose we have found the optimal (R,S) policy for the back-ordered

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