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Problem 14. Druing depression, only 25,000 units representing 25% of normal plant output can be sold at Rs. 50 each. The costs of the factory are & follows : Fixed costs Rs. 6,00,000 Variable cost at zero output Rs. 1,00,000 Variable cost at 25% of output Rs. 9,00,000 Should the plant be operated at this output or shut down for the duration of the depression expected to last a year or two? Problem 13. The XYZ Company purchases a component used in manufac- turing automobile generators directly from the supplier. The company's gener- ator production which is operated at a constant rate will need 1,000 components per month throughout the year. If ordering costs are Rs. 2,500 per order, unit cost is Rs. 3.00 per component, and annual inventory holding costs are charged at 20%, answer the following inventory policy questions: (i) What is the EOQ for this component? (ii) What is the length of cycle time in months? (iii) What are the total inventory holding and ordering costs associated with your recommended EO