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The Inventory Manager of a store in New Delhi must determine the order quantity for item X with an annual demand of 30,000 units. To

The Inventory Manager of a store in New Delhi must determine the order quantity for item X with an annual demand of 30,000 units. To determine the order required a fee of Rs. 10,000.00 per order. An annual holding fee of 20% of the item's purchase price per unit. Suppliers offer the following discounts:

Order Quantity Price / unit (Rs)
0-299 9500
300-599 9250
600+ 9000

In order to minimize the total annual inventory cost, determine the best order quantity!

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