After inviting tenders two quotations are received as follows:
(a) Rs.1.20 per unit.
(b) Rs.1.10 per unit plus Rs.3,000 fixed charges to be added irrespective of units ordered.
Advise with your arguments on whom orders should be placed and what quantity is to be ordered.
The following additional information may be of interest:
|
Present Stock |
35,000 |
|
Average Monthly Requirement |
10,000 |
|
Maximum Level |
80,000 |
|
Minimum Level |
30,000 |
|
(Sales tax to be ignored in both cases). |
|