Question: 1. A materials manager has the following data for procuring a particular item. Annual Demand = 1,000. Ordering cost = 800. Inventory carrying cost =

1. A materials manager has the following data for procuring a particular item. Annual Demand = 1,000.
Ordering cost = 800.

Inventory carrying cost = 40%.

Cost per item = 60.

If the order quantity is more than or equal to 300, a discount of 10% is given. For how much should he place the order in order to minimize total variable cost?

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