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A shopkeeper estimates annual requirement of an itemas 2 0 0 0 units. He buys from supplier 1 0 per item andthe cost of ordering
A shopkeeper estimates annual requirement of an itemas units. He buys from supplier per item andthe cost of ordering is birr each time. If the stockholding costs are per year of stock value howfrequently should replenish his stock? Further, supposethe supplier offer discount on order between and item, a discount on order exceeding orequal to can the shopkeeper reduce his cost bytaking advantages from either of the discount
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