30. A manufacturing company needs 2,500 units of a particular part every year. The company buys it at the rate of Rs 30 per unit. The cost of placing an order for the part is estimated at Rs 15 and the cost of carrying a part in stock comes to about Rs 4 per year.

The company can manufacture the part internally. In that case, it saves 20% of the price of the product.

However, it estimates a set-up cost of Rs 250 per production run. The annual production rate would be 4,800 units. The carrying costs remain unchanged.

(i) What would be the EOQ and the optimal number of orders placed in a Year?

(ii) What would be the EPLS and the average length of the production run?

(iii) Should the company manufacture the part internally or continue to purchase it from the supplier?