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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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