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Firm X faces regular demand of 150 units per month, it orders from its supplier at a purchase cost per unit of 25. Each

 

Firm X faces regular demand of 150 units per month, it orders from its supplier at a purchase cost per unit of 25. Each order costs 32, and holding cost is 18% p.a. of the purchase price. Required (a) Calculate the economic order quantity, and the average inventory level. Calculate total inventory related cost at this economic order quantity. (b)

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