following is the information relating to a type of material 617127

Following is the information relating to a type of material:

Annual demand

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following is the information relating to a type of material 617127
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2,400 units

Unit price

Rs. 2.40

Ordering cost per order

Rs. 4.00

Storage cost

2% p.a.

Interest rate

10% p.a.

Lead time

Half month

Calculate EOQ and total annual inventory cost

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