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Given an EOQ Model with Shortages in Which Annual Demand

Question 121

Multiple Choice

Given an EOQ model with shortages in which annual demand is 4200 units, Co=$160, Cc=$7 per unit per year, and Cs=$25, what is the optimal stock out level?


A) 96.44
B) 102.36
C) 108.44
D) 114.64

Correct Answer:

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