A firm requires 10000 units of a material per an
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Question
A firm requires 10000 units of a material per annum. The cost of purchasing is Re. 1 per
unit, the cost of replenishment of stock of material is Rs. 25 and the cost of storing
material is 12.5 per cent per annum of the average rupee inventory. Find the optimum
order size and the corresponding total cost using calculus.
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