Question

An item has a yearly demand of 2,000 units. The different costs in respect of make and buy are as follows. Determine the best option. Buy make item cost/unit rs. 8.00 rs. 5.00 procurement cost/order rs. 120.00 set-up cost/set-up rs. 60.00 annual carrying cost/ item/year rs. 1.60 rs. 1.00 production rate/year 8,000 units

Answer 1

Answer:

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