10. In a certain manufacturing situation, the production is instantaneous and the demand per day is R....

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10. In a certain manufacturing situation, the production is instantaneous and the demand per day is R.

Show that the optimal order quantity q per run which minimises that total cost is,

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where, C1 is the cost of holding one unit of inventory per day C2 is the unit cost of shortage per day C3 is the set-up cost per run.

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