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

question 5

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