A manufacturing organization has been consuming a certain item in large quantities and is currently procuring the item from Supplier A$.$ The price offered by the supplier is Rs $400$ per piece. The ordering cost is Rs $2,800$ per order and the carrying cost is Rs $350.$ The annual demand for the item is $10,000$ units. The supplier is currently not offering any discount. However, another supplier, Supplier B$,$ is willing to offer the following discount structure:

Up to an order size of $999=$ No discount

For an order size of $1,0001,999=2$ per cent discount in price

For an order size of $2,000$ and above $=5$ per cent discount in price

Switching over to this supplier means incurring an initial cost of Rs $15,000.$ This cost is primarily to set$-$up new communication systems with the new supplier.

What should the company do in the light of the new offer?