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21-05-2024
Business

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Case 5:EPK Itd sells beds and assorted supplies. Their best-selling bed has an annual demand of 400 units. Ordering cost is Rs. 6400, holding cost is Rs. 800 per unit per year. To minimize the total cost, how many units should be ordered each time an order is placed? If the holding cost per unit was Rs. 900 instead of Rs. 800, what would be the optimal order quantity?

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