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Determine the economic manufacturing quantity

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Reference no: EM131350319

A product is to be manufactured on a machine. The cost, production, demand, etc are as follows :

Ordering cost per order = Rs.30,

Purchase cost per unit = Rs.0.10

Inventory holding cost per unit per annum = Rs.0.05

Production rate = 1,00,000 units per year

Demand rate = 10,000 units / year.

Determine the economic manufacturing quantity.

Reference no: EM131350319

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