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Need help Problem 2 (12 points): Consider an Economic Order Quantity Model with fixed ordering cost A = 10, demand rate d = 6, and
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Problem 2 (12 points): Consider an Economic Order Quantity Model with fixed ordering cost A = 10, demand rate d = 6, and inventory holding cost h = 3. Questions: 1. (6 points) suppose that the peak inventory level is 4 under EOQ, what is the delivery rate c? What is the length of an ordering cycle? What is the optimal order quantity? 2. (6 points) if instead of delivering at a finite rate c, all items arrive instan- taneously upon ordering, then what is the optimal order quantity? Will inventory cost go up or go downStep by Step Solution
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