For the slightly chasing policy model (C₁) backorders cost $100 per occurrence,costs for carrying inventory are $25 per unit,hires cost $200 per instance,and reductions cost $300 per event - all occurring within the time period.Then,total variable cost TVC (C₁) is
A)$12,800
B)$5,800
C)$22,800
D)$12,925

Question

Quizplus · Accepted Answer

The total variable cost (TVC) is calculated by summing up all the costs: backorders, carrying inventory, hires, and reductions. Given the costs per occurrence/unit, the correct total is $12,800.

For the Slightly Chasing Policy Model (C₁) Backorders Cost $100