Paul's Sales India, a large retailer situated in the Western India, has been losing sales because of non availability of stock many times. The company's average inventory is Rs 200 lakh. Its contribution ratio is 30 per cent. The inventory carrying cost is 3.5 per cent per annum. In a study carried out by the financial manager of the company, it was found that the company will lose sales if it carried an inventory less than Rs 450 lakh per annum. The range of inventories carried and expected lost sales are given below: Expected inventory level (Rs in lakh) Expected lost sales 200 250 300 350 400 450 (Rs in lakh) The company's working capital (excluding inventory) to sales ratio is 18 per cent. Assuming a tax rate of 35 per cent and an after-tax opportunity cost of 12 per cent, show which 250 180 120 50 20 0 inventory policy the company should adopt