Question

a manufacturer requires 10000 items per year. Price discount as follows Rs. 4 upto 2000 items, Rs. 3.80 between 2000 and 4000 items. Rs. 3.70 for quantities above 4000 Ordering cost is Rs. 50 Comparitive inventory cost is 25% per year of average inventory price. Determine the optimum purchase policy discount.

Answer 1

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