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Desr sir please help me with the following.
1. Economic batch quantity is a batch size at which total annual setup cost and total annual holding cost will be minimun. Sir my question is whether these both will also be equal just like economic order quantity model.
1. Sir economic batch quantity model assumes that replenisent is gradual. What does it mean? What effect it would have on calculating economic batch quantity?
1. Yes, they will be the same. Look at example 4 in our free lecture notes and watch my lecture. You can see for yourself that they are the same!!
2. I explain in the lecture exactly what is meant by gradual replenishment and why it affects the formula.
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