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In this problem where shortages are not permitted, the appropriate parameters are K(=...

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Accounting

In this problem where shortages are not permitted, the

appropriate parameters are

K(= 12,000): fixed cost of a replenishment order,

h(= 0.30): inventory carrying cost per unit per period,

a(= 8,000): demand rate in units per period,

what is the optimum production level and cycle time?

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