Optimum order quantity and corresponding relevant cost

Reference no: EM13173841

The total relevant cost of holding inventory in a plant for purchased materials is given, TRC = (6000/Q)(60) PLUS 0.30(12)(Q/2) PLUS 6000(12) WHERE Q IS THE ECONOMIC ORDER QUANTITY. DETERMINE THE OPTIMUM ORDER QUANTITY AND THE CORRESPONDING TOTAL RELEVANT COST.

Reference no: EM13173841

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