Question: (d) A large hardware store procures and sells a certain hardware item for which the following information is available. Annual demand forecast = 8,000 units

(d) A large hardware store procures and sells a

(d) A large hardware store procures and sells a certain hardware item for which the following information is available. Annual demand forecast = 8,000 units Ordering cost = Rs. 180 per order Holding cost = Rs. 2 per item per year Supplier of the item offers a price schedule as given below. Page 4 of 5 Lot size Unit price (Rs) 22 20 1-999 1000 - 1499 1500 - 1999 19 2000 and above 18.50 Determine the order quantity for minimum total cost. (5

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