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 _______

GATE Mechanical Engineering (ME) 2016 Shift 2 Solved Paper

Question : 64 of 65

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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 _______

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