Question: T 1 8 . 3 - 9 . Reconsider Prob. 1 8 . 3 - 3 . Because of the popularity of the Power model

T 18.3-9. Reconsider Prob. 18.3-3. Because of the popularity of the Power model computer, Tim Madsen has found that customers are willing to purchase a computer even when none are currently in stock as long as they can be assured that their order will be filled in a reasonable period of time. Therefore, Tim has decided to switch from the basic EOQ model to the EOQ model with planned shortages, using a shortage cost of $200 per computer short per year. (a) find the new optimal inventory policy and its total variable inventory cost per year (TVC). What is the reduction in the value of TVC fornd for Prob. 18.3-3(and given in the back of the bock) when planned shortages were not allowed?

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