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The purchase price of an inventory item is P25 per unit. In each three month period the usage of the item is 20,000 units. The
The purchase price of an inventory item is P25 per unit. In each three month period the usage of the item is 20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is P20. What is the economic order quantity for the inventory item to the nearest whole unit?
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