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Submit Answer Practice Another Version -/3 POINTS ASWMSC115 10.8.017. MY NOTES | ASK YOUR TEACHER...

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Submit Answer Practice Another Version -/3 POINTS ASWMSC115 10.8.017. MY NOTES | ASK YOUR TEACHER A manager of an inventory system believes that inventory models are important decision making aids. The manager has experience with the EOQ policy, but has never considered a backorder model because of the assumption that backorders were "bad" and should be avoided. However, with upper management's continued pressure for cost reduction, you have been asked to analyze the economics of a backorder policy for some products that can possibly be backordered For a specific product with D = 700 units per year = $130, - $3, and $20, what is the difference in total annual cost between the EOQ model and the planned shortage or backorder model in $)? (Round your answer to two decimal places.) If the manager adds constraints that no more than 25% of the units can be backordered and that no customer will have to wait more than 15 days for an order, should the backorder inventory policy be adopted? Assume 250 working days per year The percentage of units backordered would be ---Select- 25%. The length of the backorder period would be select... 15 days. Based on these constraints, the backorder inventory policy ---Select-- be adopted Need Help

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