Question: The Pluto Company has been buying a given item in lots of 3,200 units which is quarter months supply. The cost per unit is Rs.

The Pluto Company has been buying a given item in lots of 3,200 units which is quarter months supply. The cost per unit is Rs. 10, order cost is Rs. 9 per order and carrying cost is 20%. Required: How much company saves per year by buying in the most economical lot quantities?

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