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EOQ Assumptions
The basic EOQ model creates the following supposition as:
i) The demand is identified and constant over the year
ii) The ordering cost is constant per order and specific
iii) The holding cost is constant per unit per year
iv) The purchase cost is constant or whereas no quantity discount
v) Back orders are not permitted.
Task The following information has been extracted from the accounts of R Ltd., a manufacturer and distributor of home cordless phone in Hong Kong.
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