The total relevant cost (TRC) of holding inventory in a plant for purchased materials is given as: TRC = (6000)(60/Q) + (0.30)(12)(Q/2) + (6000)(12) where Q = economic order quantity. Determine the total optimum relevant cost (TRC).

The total relevant cost (TRC) of holding inventory in a plant for purchased materials is given as: TRC = (6000)(60/Q) + (0.30)(12)(Q/2) + (6000)(12) where Q = economic order quantity. Determine the total optimum relevant cost (TRC).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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