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Per year pf the average inventory

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A factory uses annually 24000 units of raw materials which costs rs. 1.25 per unit. Placing each order costs rs. 25 and carrying cost is 6% per year pf the average inventory

a) Find the eoq and the total inventory cost including the cost of material

b) The factory works for 320 days a year. If the procurement time is 10 days and safety stock is 450 units find the re-order point. The minimum maximum and average inventories

Reference no: EM131076363

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