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Q. Calculate the Economic Order Quantity?
Calculate the Economic Order Quantity from the following details:
Annual Inventory Requirements = 4, 00,000 units
Cost of placing each order = Rs. 20
Carrying cost for one year = Rs. 4 per unit.
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Advantages: It is easy to calculate and catch. With the help of this technique, projects can be ranked in terms of their economic merits without much of complication.
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