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For the Inventory Model with Planned Shortages,the Optimal Order Quantity

Question 37

Multiple Choice

For the inventory model with planned shortages,the optimal order quantity results in


A) annual holding cost = annual ordering cost.
B) annual holding cost = annual backordering cost.
C) annual ordering cost = annual holding cost + annual backordering cost.
D) annual ordering cost = annual holding cost − annual backordering cost.

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