The demand for an item is deterministic and constant over time at 600 units per year. The item costs Rs 50 per unit and the cost of placing an order is estimated to be Rs 5. The inventory carrying cost is 20% and the shortage cost is Re 1 per unit per month. Find the optimal ordering quantity if stockouts are permitted and the units can be back-ordered at the shortage cost indicated. What will the company lose if no stockouts are permitted?