19. For one of the A-class items, the following data are available:

The purchase manager has placed an order for 500 items in the beginning of the year availing 5%
discount. At the beginning of the seventh month he procured 250 items without any discount. At the beginning of the eighth month he procured another order for 250 items with a discount of8%. Had he followed economic order quantity policy what would have been the gain or loss for the organisation?

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Annual demand = 1,000 units Ordering cost per order = Rs 400 Inventory carrying cost = 45% = Cost per item Rs 15