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The Tectonics store begins each week ( 5 2 weeks in a year ) with 4 5 0 units in stock. This stock is depleted
The Tectonics store begins each week weeks in a year with units in stock. This stock is depleted each week and reordered. If the carrying cost per unit is Rs per year and the fixed order cost is Rs then what is the total carrying cost? What is the
restocking cost? Should Tectonics increase or decrease its order size? Describe an optimal
inventory policy for Tectonics in terms of order size and order frequency.
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