In Problem 13-10, suppose that shortage is allowed at a penalty cost of p per unit per unit time.

(a) If w is the maximum shortage during the inventory cycle, show that

(b) Show that the EOQ results in Section 13.3.1 can be derived from the general formulas in (a).

Transcribed Image Text:

KD h{y(1)- w} + pw TCU (y, w) + y w* 2KD(p + h) ph (1) 2(1)y 2KDh(1-) P(p + h)