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A company uses 245,000 units of Material X each year, which costs Rs.500 for each unit. The cost of placing an order is Rs.5,000 for
A company uses 245,000 units of Material X each year, which costs Rs.500 for each unit. The cost of placing an order is Rs.5,000 for each order. The annual cost holding inventory each year is 10% of purchase price of a unit. Required: (a) Economic Order Quantity (b) Total cost (Purchase price, ordering cost and holding cost)
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