Mechanical Engineering > GATE 2016 SET-2 > Inventory Control
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:
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 ________.
| 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 ________.
Correct : 1500
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