If you have total annual cost (TAC) ,total annual setup cost (TASC) ,total annual holding cost (TAHC) ,and total annual materials purchase cost (TAMPC) ,then you can calculate total annual stock-out cost (TASOC) by this formula.
A) TASOC = TAC - TASC - TAHC - TAMPC
B) TASOC = TAC + TASC - TAHC - TAMPC
C) TASOC = TAC + TASC + TAHC - TAMPC
D) TASOC = TAC + TASC - TAHC + TAMPC
Correct Answer:
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