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XYZ Ltd . Buys 7 5 0 0 0 glass bottles per year. Price of each bottle is R . 0 . 9 0 .

XYZ Ltd. Buys 75000 glass bottles per year. Price of each bottle is R.0.90. Cost of purchase is Rs.100 per order. Cost of holding one bottle per year is Rs.0.20. Bank interest is 15% including a charge for taxes and insurance on the price.
a) Find out EOQ quantity.
b) What inventory costs are incurred with this ordering quantity?

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