Question - Lakshmi Electricals Limited is a company based out of Vijayawada that sells Electric Bulbs to customers based across the country. Lakshmi Electricals sells 410.000 Bulbs in a year. The carrying cost of inventory per Bulb is Rs. 10 per year, and it costs Rs. 4 to place, process and receive an order.

a) What ordering quantity will minimize the inventory costs?

b) What inventory costs are incurred (with this ordering quantity?