29. An item used by a company may be purchased from a supplier for Rs 32 per unit or manufactured in its plant at a rate of 10,000 units per annum, for Rs 30 per unit. If the item is purchased, the ordering cost is Rs 12 per order while if it is produced internally, the set-up cost per production run is Rs 60. The annual demand for the production is 2,500 units-a uniform 10 units per day. The holding cost is 12%

of the inventory value. Should the item be purchased from outside or produced internally?