Alpha Industry needs 15,000 units/year of a bought out component which will be used in its main
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Alpha Industry needs 15,000 units/year of a bought out component which will be used in its main product. The ordering cost is ! 125 per order and the carrying cost per unit per year is 20 per cent of the purchase price per unit which is ! 75.
Find
(a) Economic order quantity.
(b) Number of orders per year.
(c) Time between successive orders.
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