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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