Question: 1 . Based on the above Find and explain the economic order quantity and the total inventory cost per annum. The costs of placing an

1. Based on the above
Find and explain the economic order quantity and the total inventory cost per annum.
The costs of placing an order are Rs.150 per order. It is estimated that 1000 units will be used in the next 12 months. The carrying cost per month is Rs.2.50. Assuming that the demand is deterministic and continuous and that no stock-outs are allowed, determine the optimal order quantity.

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