Estimate the minimum cost order quantity


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Q: Suppose that Westside Auto with D= 12,000 units per year, Cb= $0.50, and CO= $25 , decided to operate with a backorder inventory policy. Backorder costs are estimated to be $5 per unit per year. Identify the following:

e) Minimum cost order quantity

f) Maximum number of backorders

g) Maximum inventory

h) Cycle time

i) Total annual cost

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Operation Management: Estimate the minimum cost order quantity
Reference No:- TGS02064926

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