Overstock and understock cost are given find optimal order quantity
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Optimal Order Quantity = 13('00). 0.917 ... C(Q) = overstocking cost + understocking cost. ∫. ∫. ∞. −. + .... Overstock. Expected. Understock. Expected. Profit. 150 526. 186.7. 8.6. $47,469.
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