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at what level of inventory there are no stock out costs?
is it the re-ordre level or the maximum or the minimum re-ordre level?There is no point in simply asking questions and wanting the answer.
Presumably the book in which you found the question also has an answer. You should say where you have problems understanding the answer and then I will try and help.
(If you do not have the answers because it is homework, then we are certainly not here to do your homework 🙂 )
Have you watched the free lectures on this?
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