A Ltd. is committed to supply 24,000 bearings per annum to B Ltd. on a steady basis. It is estimated that it costs 10 paise as inventory holding cost per bearing per month and that the set-up cost per run of bearing manufacture is Rs. 324.
(i) What should be the optimum run size for bearing manufacture?
(ii) What would be the interval between two consecutive optimum runs?
(iii) Find out the minimum inventory cost per annum.