MABS Institution
11th Business Maths Weekly Test - 2 ( Applications of Differentiation )-Aug 2020
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A manufacturer has to supply 12,000 units of a product per year to his customer. The ordering cost (C3) is Rs 100 per order and carrying cost is Rs 0.80 per item per month. Assuming there is no shortage cost and the replacement is instantaneous, determine the
(i) economic order quantity
(ii) time between orders
(iii) number of orders per year