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The following information has been extracted from the records of a company Consumption of materials per annum 10000 Kg Order placing costs per order N50
- The following information has been extracted from the records of a company
Consumption of materials per annum | 10000 Kg |
Order placing costs per order | N50 |
Cost per kg of raw materials | N2 |
Holding costs | 8% of cost |
Required: Calculate the
- Economic order quantity
- Number of orders to be placed in a year
- Total ordering cost
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