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A stockist has to supply 400 units of a product every Monday to his customers. He gets the product at Rs. 50 per unit from the manufacturer. The cost of ordering and transportation from the manufacturer to the stockist’s premises is Rs.75 per order. The cost of carrying inventory is 7.5% per year of the cost of the product. What are the economic lot size and the total optimal cost (including capital cost) for the stockist ?

         (a) 989 units/order and Rs. 20,065.80/week

         (b) 912 units/order and Rs.20,065.80/week

         (c) 989 units/order and Rs. 18574.50/week

         (b) 912 units/order and Rs. 18574.50/week

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