The production department for a company requires 7200kg of raw material for manufacturing particular item per year

The production department for a company requires 7200kg of raw material for manufacturing
particular item per year. It has been estimated that the cost of placing an order is A 72 and the
cost of carrying inventory is 25 percent of the investment in the inventories. The price of raw
material is A 20 per kg. Find the economic order quantity (EOQ), the total cost per unit time
and the cycle time.
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