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Given an EOQ Model with Shortages in Which Annual Demand

Question 85

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 annual carrying cost?


A) 1059.03
B) 1355.55
C) 296.51
D) 495.74

Correct Answer:

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