Consider the following data for an item.
Annual demand: 2500 units per year
Ordering Cost: Rs.100 per order, Inventory holding rate: 25% of unit price. Price quoted by a supplier
|
Order quantity(units)
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Unit Price(Rs)
|
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<500
|
10
|
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$\geq$500
|
9
|
The optimum order quantity (in units) is
(a) 447 (b) 471
(c) 500 (d) $\geq$600