While modeling costs for optimization, you are conscious of the necessity to respect inventory targets and meet demands in the short term .
Which of the following are valid relationships between costs you must adhere to? Note: There are 2 correct Answers to this question.
A . Target inventory violation cost should be less than max inventory violation cost.
B . Target inventory violation cost should be greater than discount for demand lateness.
C . Target inventory violation cost should be less than transportation cost rate.
D . Target inventory violation cost should be greater than inventory holding cost rate.
Answer: C,D
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