a define economics order quantity derive using, Mechanical Engineering

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a define economics order quantity derive using

a) Define Economics Order Quantity. Derive, using neat diagram, the mathematical formula for economic order quantity.

b) The purchase manager of an industrial unit is placing one order annually for the entire annual requirement of 4,50,000 units of a special switch. He is increasing Rs. 1000.00 as order cost and 10% as annual cost of carring the inventory. Is the purchase manager optimal in his decision?

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