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Precision engineering Factory consumes 5 0 , 0 0 0 units of a component per year. The ordering receiving and handling costs are Rs 3

Precision engineering Factory consumes 50,000 units of a component per year. The ordering receiving and handling costs are Rs 3 per order while trucking costs are Rs 12 per order. The carrying cost includes interest cost of Rs 0.064 per unit per year; storage cost of Rs 1000 per year for 50,000 units. Calculate EOQ.

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