1. A company has determined from its analysis of production and accounting data that, for a part...
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1. A company has determined from its analysis of production and accounting data that, for a part number KC-438, the annual demand is equal to 10,000 units, the cost to purchase the item is Rs 36 per order, and the holding cost is Rs 2/unit/year.
Determine
(a) What should the Economic Order Quantity be?
(b) What is the number of days' supply per optimum order?
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