1. What is the relationship between formative and summative evaluation, and ROI?
2. An inventory system with planned shortages is being considered. The EOQ for this model was developed in class. Consider this model with this variation: during the inventory draw-down period, rather than a straight line reduction, inventory falls.to ·80M at .60tl, and then falls to 0M at 1.0l. Develop the new EOQ equation for this model. This model may be difficult to solve algebraically. If it is necessary to make simplifying assumptions, carefully state the assumptions and proceed.