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A company requires 2,000 units of material A per month. The cost per order is 250 and the holding costs of inventory are 1.33. per

A company requires 2,000 units of material A per month. The cost per order is

250 and the holding costs of inventory are 1.33. per unit per year. Investigate the

total cost of buying the material in quantities of 2,000, 3,000 and 4,000 units at a time.

Calculate which is the cheapest option?

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