Production and Industrial Engineering
GATE PI concept:quantity-discount PYQs
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Question 60
Open questionPINAT2 marksNeeds review
A company purchases items in bulk for getting quantity discount in the item’s price. The price break-up is given in the table. The annual demand for the item is 5000 units. The ordering cost is Rupees 400 per order. The annual inventory carrying cost is 30 percent of the purchase price per unit. The optimal order size (in units) is ________. (Answer in integer)
Quantity of item (Q in units) | Unit price of item (Rupees) |
|---|---|
0 ≤ Q < 1200 | 10 |
1200 ≤ Q < 2000 | 8 |
2000 ≤ Q | 7 |
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