Find the optimal order quantity for a product of which the price breaks are as follows:
|
Qty
|
Unit Cost
|
|
0 $\leq$ q1 $\leq$50
|
Rs. 10
|
|
50 $\leq$ q2 $\leq$100
|
Rs. 9
|
|
100 $\leq$ q3
|
Rs. 8
|
The monthly demand for the product is 200 units, the cost of storage is 25% of the unit cost and ordering cost is Rs.20 per order.