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Particular item has a demand of 9000 units per year the

Particular item has a demand of 9,000 units per year. The cost of one procurement is Rs. 100/-and the holding cost per unit is Rs. 2.40 per year. The replacement is instantaneous and no shortages

are allowed. Determine: (a) Economic lot size, (b) The number of orders per year, (c) The time

between orders, and (d) the total cost per year if the cost of one units is Re.1/-.

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