(Answered) Shopkeeper has a uniform demand of an item at the rate of

Engineering

Shopkeeper has a uniform demand of an item at the rate of 50 units per month. He buys from supplier at the cost of Rs. 6/- per item and the cost of ordering is Rs. 10/- each time. If the stock holding costs are 20% per year of stock value, how frequently should he replenish his stocks? What is the optimal cost of inventory and what is the total cost?

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