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Compute economic order quantity

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Reference no: EM132744131

Question - Daima ltd has an aggregate demand of 1.2 million units. Each time they place an order there is an ordering cost of Ksh1000, holding costs is sh100 per unit.

Required -

i) Compute economic order quantity.

ii) Determine number of orders to be made based on economic order quantity.

Reference no: EM132744131

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