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The demand for an item is 8000 units per annum and the

The demand for an item is 8000 units per annum and the unit cost is Re.1/-. Inventory carrying charges of 20% of average inventory cost and ordering cost is Rs. 12.50 per order. Calculate optimal order quantity, optimal order time, optimal inventory cost and number of orders.

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Finance Basics: The demand for an item is 8000 units per annum and the

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