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Demand for an item is constant at 1 0 0 0 units a year. Unit cost is Rs . 5 0 , ordering cost is
Demand for an item is constant at units a year. Unit cost is Rs ordering cost is
Rs holding cost is percent and no shortages are allowed. Describe an optimal
inventory policy for the item. What order size will give a variable cost within percent
of optimal? What is the cost if supplier only makes delivery of units?
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