) The demand for purchased item is 1000 units/month, and shortages are allowed. If the unit cost is Rs.
1.50 per unit, the cost of making one purchase is Rs. 600, the holding cost for one unit is Rs. 2 per year,
and the cost of one shortage is Rs 10 per year, determine : (a) The optimum purchase quantity,
(b) The number of orders per year. (c) The optimum total yearly cost.
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