A company has an annual demand of 1000 units, ordering cost of Rs. 100 – McqOptions

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1.	A company has an annual demand of 1000 units, ordering cost of Rs. 100/order and carrying cost of Rs. 100/unit/year. If the stock out costs are estimated to be nearly Rs. 400 each time the company runs out of stock, the safety stock justified by the carrying cost will be
A.	4
B.	10
C.	40
D.	100
Answer» C. 40

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