The inventory cost, IC, is the total combined ordering costs, purchasing costs and storage costs of a product KD h IC(q):T+pD+?q (q>0) where K, D71)
The inventory cost, IC, is the total combined ordering costs, purchasing costs and storage costs of a product KD h IC(q):T+pD+?q (q>0) where K, D71) and h are constants and the independent variable q is called the order quantity. Show that the inventory cost is minimized when . . 2K1) the order quantity q IS equal to T
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