A two$-$wheeler component manufacturing unit uses large quantities of a component made of steel.

Although these are production items, the demand is continuous and inventory planning could be done

independent of the production plan. The annual demand for the component is $2,500$ boxes. The

company procures the item from a supplier at the rate of $750$ per box. The company estimates the

cost of carrying inventory to be $18$ per cent per unit per annum and the cost of ordering as $1,080$ per

order. The company works for $250$ days in a year. How should the company design an inventory control

system for this item? What is the overall cost of the plan?