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Cost of one procurement

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Reference no: EM13904767

A particular item has demand of 3000 units per year. The cost of one procurement is Rs. 100 and the holding cost per unit is Rs. 2.40 per year. The replenishment is instantaneous and no shortages are allowed.

Determine:

(i) the economic order quantity

(ii) the number of orders per year

(iii) the time between orders and

(iv) the optimum cost per year

Reference no: EM13904767

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