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Example 14.2 A company that operates for 50 weeks in a year is concerned about its stocks of copper cable. This costs Rs 240 a meter and there is a demand for 8,000 meters a week. Each replenishment cose Rs 1,050 for administration and Rs 1,650 for delivery, while holding costs are estimated at 25 per cent of value held a year. Assuming no shortages are allowed, what is the optimal inventory policy for the company? How would this analysis differ if the company wanted to maximize its profits rather than minimize cost! What is the gross profit if the company sells the cable for Rs 360 a meter