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Hindustan Engineering Factory consumes 7 5 0 0 0 units of a component per year. The ordering, receiving and handling costs are Rs . 6
Hindustan Engineering Factory consumes units of a
component per year. The ordering, receiving and handling
costs are Rs per order while transportation cost is Rs
per order. Depreciation and obsolescence cost is Rs
per unit per year, interest cost Rs per unit per year,
storage cost Rs per year for units. Calculate a
EOQ, b Total inventory cost with EOQ
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