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The provided image describes an inventory and cost problem related to a grocery company storing and delivering canned food items. Here's a breakdown of the content:

- The company experiences a uniform annual demand (**D**) of 1800 canned items of one kind.
- Each order incurs a fixed cost of **Tk 20** (likely the currency) due to storage and overhead costs.
- The inventory holding cost is **20%** of the value of the average inventory.
- The vendor charges **Tk 10 per order** for handling.
- The price per unit of the items follows a discount schedule based on the order quantity **Q**:
  - **Tk 0.90 per unit** if \( 0 \leq Q < 500 \)
  - **Tk 0.85 per unit** if \( 500 \leq Q < 1000 \)
  - **Tk 0.80 per unit** if \( 1000 \leq Q \)

This problem is structured as an economic order quantity (EOQ) problem with quantity discounts.

### Relevant Equations:
1. **EOQ Formula:**
   \[
   Q^* = \sqrt{\frac{2DS}{H}}
   \]
   where:
   - \( D \) is the annual demand (1800 items),
   - \( S \) is the order cost per order,
   - \( H \) is the holding cost per unit per year.

2. **Holding Cost (H)** is 20% of the unit price (depending on \( Q \)).

3. **Total Cost Function:** We need to calculate the total cost for each price interval considering:
   - Ordering cost: \( \frac{D}{Q} \times S \)
   - Holding cost: \( \frac{Q}{2} \times H \)
   - Purchase cost: \( D \times C \), where \( C \) is the unit cost based on \( Q \).

To solve this:
1. Find the EOQ for each price interval.
2. Compare total costs for each interval to determine the best order quantity.

Would you like me to proceed with detailed calculations for this?

An associated grocer's company stores different canned food items and delivers them on demand to different grocery shops. The company experiences a uniform annual demand of 1800 canned items of one kind. The company incurs a fixed cost of Tk 20 for each order and because of storage space and other overhead costs the inventory of the item costs annually 20% of the value of average inventory. The vendor's price schedule indicates a charge of Tk 10 per order for handling plus a discounted unit price of items as follows: Tk 0.90 if 0 <= Q < 500, Tk 0.85 if 500 <= Q < 1000, Tk 0.80 if 1000 <= Q.

Explore the economic order quantity (EOQ) problem for a grocery company with a uniform demand of 1800 canned items. Learn how to calculate the optimal order quantity considering fixed ordering costs, handling charges, and a price schedule offering discounts based on quantity. This detailed solution involves key concepts in inventory management and cost analysis.

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