Suppose that we extend POQ model to the back order case. That is, the unfulfilled demand (the on-hand inventory is lower than the demand) is backlogged, and can be satisfied in future with a backlogging cost. The notations are defined as follows:
a) Please draw a figure to describe the inventory levels at different time
b) Please show the formula of the average total cost over a year
c) To minimize the average total cost over a year, please determine the optimal Q and B
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