### What is the optimal total relevant cost

Assignment Help Operation Management
##### Reference no: EM13900502

A= \$400, D=10000 units, v= \$5, r=0,25\$/year , b =0,6 \$/year, F = 50\$(Fixed Cost)

1) a) What is the optimal order size Q and backlog amount s ?

b) What is the optimal total relevant cost?

2) Consider again the problem, assume the fixed cost of having a backlog cycle is F=200\$

a) What is the optimal order size Q and backlog amount s?

b) What is the optimal total relevant cost?

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