In an Economic Order Quantity (EOQ) Model with Shortages Allowed

Multiple Choice

In an economic order quantity (EOQ) model with shortages allowed, the decision variables are:

A) Q, the order quantity and b, the maximum amount backlogged
B) Q, the order quantity and p, the unit penalty cost
C) D, the demand and b, the maximum amount backlogged
D) D, the demand and p, the unit penalty cost