Name the three costs involved in inventory control. A store procures and sells certain items. Information about an item is as follows:
Expected annual sales = 8000 units
Ordering cost = Rs 1,800 per order
Holding cost = 10% of average inventory value.
The items can be purchased according to the following schedule:
Lot Size Unit Price (Rs)
1-999 220
1000 - 1499 200
1500 - 1999 190
2000 and above 185
Determine the best order size.