Question

A manufacturing company purchase 9,000 parts of
machine for its annual requirements ordering one month
usage at a time. Each part costs Rs.20. The ordering cost
per order is Rs.15 and the carrying cost is 15% of the
average inventory per year. You have been asked to
suggest the more economical purchasing policy for the
company. What advice would you offer and how would it
save the company per year.

Answer 1

Answer:

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Explanation:

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