The Call-Us Plumbing Supply Company has an adjacent production departion lots, they would produce the#3925valve. If the valves were produced in-house in production lots, they would ordering setup flow gradually into inventory at the main warehouse for use. The carrying cost, ordering or setuly inventory rather than being received all at once as a batch, Mr. Rao wonders how this would affect the order quantity and annual stocking cost. Sunil develops these estimates:D=10,000valves per year,C=RRs0.40per valve per year,S=RRs5.50per order,d=40valves per day valves per year,C=Rs 0.40per value per year, analysis of the new total annual stocking cost & for the new Economic order quantity.