Question

Assuming that an inventory policy follows EOQ, prove the following equality: \frac{V C}{V C^{*}}=\frac{1}{2}\left(\frac{T}{T^{*}}+\frac{T^{*}}{T}\right) where VC is the variable cost, VC* is the optimal (minimum) variable cost, T is the

cycle time, and T* is the optimal cycle time.

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