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ABC ltd uses 6250 kg of raw material per year . It costs RM10 to hold 1 kg for One year, and the costs of
ABC ltd uses 6250 kg of raw material per year. It costs RM10 to hold 1 kg for
One year, and the costs of ordering each consignment of raw materials are
RM200.
Calculate the following:
a) The reorder quantity/ EOQ/ ROQ
b) Ordering Cost
c) Holding Cost
d) Total cost of stock
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