A food processing company uses 25,000 kg of corn flour every year. The quantity - discount price of corn flour is provided in the table below.
Quantity (kg) |
Unit Price (Rs/kg) |
1 - 749 |
70 |
750 - 1499 |
65 |
1500 and above |
60 |
The order processing charges are Rs. 500/ order. The handling plus carry-over charge on an annual basis is 20% of the purchase price of the corn flour per kg. The optimal order quantity (in kg) is
- 1500