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Answer Posted / sinisetty
The acquisition of goods by the seller depends upon un
certain event in the future are called contingent goods.
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A factory uses annually 24,000 units of a raw material which costs Rs. 1.25 per unit. Placing each order costs Rs. 25 and carrying cost is 6% per year of the average inventory. (a) Find the economic order quantity and the total inventory cost including the cost of material.
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