The two equations to solve simultaneously for the case of B2 shortage cost for the (s, Q)

system are Q =

2AD + 2DB2vσLGu(k)

rv and pu≥(k) = Qr DB2 For the following item, compute the optimal s and Q.

L = 2 weeks r = 0.26$/$/year D = 800 units/year B2 = 0.30 A = $20 σL = 14.2 units v = $4.50/unit LOP52