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Q77Section III (Statistics)77 of 84

Annual demand 32003200, holding 14×6\frac14\times6: Q∗=2⋅3200⋅150/1.5=800Q^*=\sqrt{2\cdot3200\cdot150/1.5}=800

If the half yearly demand of an item is 1600 units, inventory carrying charges 25% per annum, the unit cost is Rs. 6.00 and the cost of per order is Rs. 150, then the economic order quantity will be:

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