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Suppose that in Problem 1 3 a Type 2 service objective of 9 5 percent is substituted for the stock - out cost of$ 1

Suppose that in Problem

13

a Type

2

service objective of

95

percent is substituted for the stock

-

out cost of$

12.80 .

Find the resulting values of Q and R

.

Also, what is the imputed cost of shortage for this case?

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