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A building material shop owner in Roorkee is going through the last year s inventory cost of cement sacks, a sack of cement costs

A building material shop owner in Roorkee is going through the last years inventory cost of cement sacks, a sack of cement costs 500 Rs. The average monthly demand last year was 1250 units, the cost per order, including the transport was 1200 Rs and annual unit holding cost was 20% of material cost. Last year he ordered the lots of 500 sacks per order.


What was the total ordering cost for the last year?

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