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A company places orders for supply of two items A and B. The order cost for each of the items is Rs.300/order. The inventory carrying cost is 18% of the unit price per year per unit. The unit prices of the items are Rs. 40 and Rs.50 respectively. The annual demands are 10,000 and 20,000 respectively. (a) Find the economic order quantities and the minimum total cost? (b) A supplier is willing to give a 1% discount on price, if both the items are ordered from him and if the order quantity for each item is 1000 units or more. Is if profitable to avail the discount?

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