The following relationships for inventory costs have been established for the Rejina Corporation. Annual sales are 500,000 units The purchase price per unit is Rs 50 The carrying cost is 10% of the…

The following relationships for inventory costs have been established for the Rejina Corporation. Annual sales are 500,000 units The purchase price per unit is Rs 50 The carrying cost is 10% of the purchase price of goods The cost per order place is Rs 2,000 Desired safety stock is 10,000 units (On hand initially) Two weeks are required for delivery a) What is the economic ordering quantity? b) What is the cost of ordering and carrying inventories at the EOQ? c) What is the optimal number of orders to be placed? d) What is re-order level?