You are a manufacturer of tennis balls in the Mumbai Suburbs. Recently, you got an order to supply 1200 units of the same every month. The cost of carrying an inventory of such tennis balls is 1.80 per unit every year. The production process requires a setup cost on a per run basis of Rs 1000.

Compute:

a. The EOQ, and define the need of computing the EOQ

b. The Optimum number of orders and optimum period of supply (5 Marks)