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On an annual requirement of 1 0 0 items spread evenly throughout the year, a purchaser has an opportunity of buying all 1 0 0

On an annual requirement of 100 items spread evenly throughout the year, a purchaser has an opportunity of buying all 100 units at a price of $100 each, or buying 10 units at a time at a price of $130. If the inventory carrying cost is 20 percent per year and assuming no ordering costs:
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buying 100 at a time will save the company $3,000 per year.
buying 100 at a time will save the company $2,260 per year.
buying 100 at a time will save the company $2,130 per year.
buying 10 at a time will save the company $1,000 per year.
buying 10 at a time will save the company $870 per year.

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