Mr Ahmed insist of buying 200 pcs of item 001 per order. Their quarterly demand is 500 pcs while the cost of order is BD 10 and the cost to make the inventories in safe place is Bd 3. How much is the company’s Total Cost by not following the optimum quantity ? ( 5 pts )
a.
BD 400
b.
BD 367
c.
BD 450
d.
BD 290