Suppose that instead of measuring shortage in terms of cost

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Suppose that instead of measuring shortage in terms of cost

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Reference no: EM1386329

Suppose that instead of measuring shortage in terms of cost per shortage year, a cost of S dollars is incurred for each unit the ?rm is short. This cost does not depend on the length of time before the backlogged demand is satis?ed.Determine a new expression for TC (q, M ), and explain how to determine optimal values q* and M*

Reference no: EM1386329

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