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Production Planning

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Kukuh Faedlur Rahman14522125

How to prove that inventory calculation is mostly use triangle equation? Basic Inventory Analysis

It is easy to prove that triangle equation is applied in inventory analysis.

Q

Mathematic notation:Q = Order QuantityH = Holding CostSo, Inventory carrying cost = where H represent base of triangle and Q represent the height.H

Backorder ModelNote:Inventory carrying cost = t1 = V/R, In triangle t1 = base and v = height, area of triangle = So inventory carrying cost at t1 =