Question

A two wheeler manufactures from Pune, buys tyres form a manufacturer Rs. 400 per tyre. On

an average the consumption of tyre is 50,000 units in a year. Every time the order is placed on ordering cost of Rs. 8,000 is incurred regardless of number of tyres ordered. The cost of capital is twenty percent per year

(1) How many tyres should be purchased each time an order is placed?

(ii) To fulfill the demand, how many times in a year should the order be placed for the tyres?​

Answer 1

Answer:

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