In this problem where shortages are not permitted, the appropriate parameters are K(=...
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Accounting
In this problem where shortages are not permitted, the
appropriate parameters are
K(= 12,000): fixed cost of a replenishment order,
h(= 0.30): inventory carrying cost per unit per period,
a(= 8,000): demand rate in units per period,
what is the optimum production level and cycle time?
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