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18/08/2022 2:55 pm
While modeling costs for optimization, you are conscious of the necessity to respect inventory targets and meet demands in the short term .
Which of the following are valid relationships between costs you must adhere to? Note: There are 2 correct Answers to this question.
- A . Target inventory violation cost should be less than max inventory violation cost.
- B . Target inventory violation cost should be greater than discount for demand lateness.
- C . Target inventory violation cost should be less than transportation cost rate.
- D . Target inventory violation cost should be greater than inventory holding cost rate.
Suggested Answer: C,D