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Suppose that the demand rate is constant and known and it is R per unit time. To meet the demand, a firm orders products in

Suppose that the demand rate is constant and known and it is R per unit time. To meet the demand, a firm orders products in batches of Q. Whenever a batch is ordered, the firm pays an order processing/set up cost of S. The purchase cost of each unit in the batch is constant p. When the firm is holding inventory, it pays an inventory holding cost at the rate of h per dollar of inventory held and per time. The total cost rate is

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