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Academic MBA Question:

MBA Assignments – You are the manager of a consumer appliance store that sells electrical appliances. One of the home appliances is estimated to have an annual demand of 900 units. The store incurs Rs.180 for every order it place for the delivery of this appliance from its supplier. The storing cost is Rs.90 per unit per annum.

  1. What will be your ordering quantity to keep the total inventory cost minimum?
  2. Discuss the advantages the store will get if you codify all the items in the store

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