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In the EOQ Model with Planned Shortages,if Annual Demand Is

Question 71

Multiple Choice

In the EOQ model with planned shortages,if annual demand is 500,holding cost is $200,ordering cost is $15,and back-order cost is $400,the quantity back-ordered per replenishment cycle,rounded to the next whole number,is:


A) 3
B) 4
C) 5
D) 12
E) 38

Correct Answer:

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