A company updates its policy to start accepting backorders. The company decides to issue some

$($minimal$)$ discount when a customer is ready to wait to make sure that the demand does not decrease

when the customer order is unfulfilled i$.$e$.$ the cost of shortage cost is very small. Assume that when no

backorders were allowed, the company was using an EOQ of Q$*.$ With the new policy the new EOQ is

calculated as Q$**.$ Avoiding excess inventory is still a higher priority because of the large cost.

Which one of the following is a valid relationship?

a$.$ Q$*$ is less than Q$**$

b$.$ Q$*$ is greater than Q$**$

c$.$ Q$*$ is equal to Q$**$

d$.$ Need more information to determine