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An auto industry purchases spark plugs at the rate of Rs. 25 per
piece. The annual consumption of spark plug is 18,000 nos. If the
ordering cost is Rs.250 per order and carrying cost is 25% p.a. what
would be the EOQ? If the supplier of spark plugs offers a discount
of 5% for order quantity of 3,000 nos. per order, do you accept the
discount offer?
Sagot :
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