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Consider again the problem assume the fixed cost of having


A= $400, D=10000 units, v= $5, r=0,25$/year , b =0,6 $/year, F = 50$(Fixed Cost)

1) a) What is the optimal order size Q and backlog amount s ?

b) What is the optimal total relevant cost?

2) Consider again the problem, assume the fixed cost of having a backlog cycle is F=200$

a) What is the optimal order size Q and backlog amount s?

b) What is the optimal total relevant cost?

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Operation Management: Consider again the problem assume the fixed cost of having
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