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  2. Topic
    Business
  3. Study Set
    Applied Management Science
  4. Exam
    Exam 8: Inventory Models
  5. Question
    Annual Demand = 2000 Units
Solved

Annual Demand = 2000 Units

Question 2

Question 2

Essay

Annual demand = 2000 units.Cost of order = $100
Holding cost = $10
Cost of backorder = $5
Cost of item = $50
Goodwill cost = $10
Should you use a planned shortage model or EOQ?

Correct Answer:

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