1.

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

Answer» 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
  1. 1500


Discussion

No Comment Found

Related InterviewSolutions