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Total relavent cost of holding in a plant for purchased materials is given, TRC = ( 6 0 0 0 / Q ) ( 6

Total relavent cost of holding in a plant for purchased materials is given, TRC

= (6000 /

) (60) + 0.30 (12) (

/ 2) + 6000 (12),

where Q

=

economic order quantity

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