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Hindustan Engineering Factory consumes 7 5 0 0 0 units of a component per year. The ordering, receiving and handling costs are Rs . 6

Hindustan Engineering Factory consumes 75000 units of a
component per year. The ordering, receiving and handling
costs are Rs.6 per order while transportation cost is Rs.24
per order. Depreciation and obsolescence cost is Rs.0.008
per unit per year, interest cost Rs.0.12 per unit per year,
storage cost Rs.2000 per year for 75000 units. Calculate (a)
EOQ, (b) Total inventory cost with EOQ
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