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2. A manager tries to balance the purchases from the import and the local suppliers. The cost of import is Rs. 50,000 per thousand
2. A manager tries to balance the purchases from the import and the local suppliers. The cost of import is Rs. 50,000 per thousand units, and the local supplier cost is Rs. 60,000 per thousand units. The demand for the product is normally distributed with a mean of 10,000 units and a standard deviation of 3,000 units. 1. Calculate the optimal order quantity. II. What will be the optimal order quantity when the cost of import is reduced to Rs. 40,000 per thousand units?
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