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Yearly use 4,800 units, Rs 150 per order, Rs 4 carrying per unit a year. Economic order size?

A300 units
B480 units
C1,200 units
D600 units
Answer & Solution
Correct answer: D. 600 units
The square root of 2 x 4,800 x 150 / 4 is the square root of 360,000, which is 600 units.
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