A shopkeeper has a uniform demand of an item @50 items per month. He buys from a

supplier at a cost of Rs.6 per item and the cost of ordering is Rs.10 each time. If the stock

holding costs are 20% per year of stock value, how frequently should he replenish his stock?

Suppose the supplier offers a 5% discount on orders between 200 and 999 and a discount of 10%

on orders exceeding or equal to1000, can the shopkeeper reduce his cost by taking advantage of

either of these discounts?