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Problem IC4 (2B) Company has an adjacent production department that could The Call-Us Plumbing Supply Company has an adjacent production departion lots, they would produce the #3925 valve. 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=10,000 valves per year, C=RRs0.40 per valve per year, S=RRs5.50 per order, d=40 valves per day valves per year, C=Rs0.40 per value per year, analysis of the new total annual stocking cost \& for the new Economic order quantity