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, C_o=$160, C_c=$7 per unit per year, and C_s=$25, what is the optimal stock out level?

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

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Definitions:

Fishes

Aquatic, gill-bearing animals that lack limbs with digits, often featuring scales, fins, and diverse forms and life histories.

Amphibians

A class of cold-blooded vertebrates that includes frogs, toads, salamanders, and newts, characterized by a life cycle that usually involves a transition from water to land.

Homo Sapiens

Species name of modern humans.

195,000 Years

An estimate of the time period since the emergence of anatomically modern humans.