A Purchase Manager has decided to place an order for a minimum quantity of 500 units of a particular item in order to get a discount of 10%. From the records, it was found out that in the last year, 8 orders each of size 200 units have been placed. Given ordering cost is Rs. 500 per order, Inventory carrying cost is 40% of the inventory value and the cost per unit is Rs. 400. Is the purchase Manager justified in his decision? What is the effect of his decision to the company?