Alternatively if the demand can wait at the cost of 5 per


Demand for an item is projected to be 100 units per month. The monthly holding cost is $2 per unit, and it costs $55 to process an order.

Alternatively, if the demand can wait at the cost of $5 per unit per month, what should the order quantity and the amount short per order cycle be?

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Operation Management: Alternatively if the demand can wait at the cost of 5 per
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