A medicine manufacturing company, for packing their product, uses glass phials which they collect from a nearby factory in batches at equal interval of time throughout the year. Determine economic batch size for each collection on the basis of the following data:
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Estimated annual requirement
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250,000 pieces
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Purchase price
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Rs.1 per piece
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Cost of transportation
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Rs. 100 per trip
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Cost of storage
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Rs. 10 Per thousand
per year
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Interest of investment
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15% per Year
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Minimum inventory to be maintained at any time
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1000 Pieces
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and calculate cost of inventory per piece including all charges.