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Demand for a product with a unit ordering cost of $150 is 800 units per year,holding cost per unit per year is $10, and backorder
Demand for a product with a unit ordering cost of $150 is 800 units per year,holding cost per unit per year is $10, and backorder cost is estimated to be $20 per unit per year.What amount of savings, if any,would there be in total annual inventory cost by using planned shortages instead of a basic economic orderquantity?
please show calculation with steps, Thank you.
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