Bigbasket sells 550 units per month of Sunsilk shampoo sachets. The unit cost of a sachet is Rs.7 and the cost of placing an order is Rs.44.

Bigbasket uses an inventory carrying charge of 20% per year. Determine the optimal order quantity, order frequency, and the annual cost of inventory management. If, through automation of the purchasing process, the ordering cost can be cut to Rs.20, what will be the new economic order quantity, order frequency, and annual inventory management cost? Explain these results