Calculate eoq and total cost

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Question: An organisation ordered 10 orders each of size 200 units. The ordering cost is 400 per order. The inventory carrying cost is 30% of the inventory value and the cost of purchase per unit is 500. Calculate EOQ and Total Cost. The purchase manager decides to place minimum order of 500 units to get a discount of 10%. Is his decision justified?

Reference no: EM133388777

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