Find the minimum cost and purchase quantity

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Reference no: EM131370322

The demand for a certain item is 16 units per period. Unsatisfied demand causes a shortage cost of Rs.0.75 per unit per short period. The cost of initiating purchasing action is Rs. 15.00 per purchase and the holding cost is 15% of average inventory valuation per period. Item cost is Rs. 8.00 per unit. Find the minimum cost and purchase quantity.

Reference no: EM131370322

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