From the following data, determine the EOQ.
(a) List price of product X is Rs 800 per gross.
(b) 40 per cent trade discount is allowed on list price on purchases in gross lots.
(c) Freight cost is Rs 20 per gross from the transport company to the factory premises.
(d) Annual usage or product X: 36 gross per year.
(e) Cost of placing an order is Rs 10, the cost of receiving an order is Rs 20.
(f) Carrying cost is 20 per cent of the effective purchase price of goods per year.
(g) Insurance and taxes are approximately 12 per cent of the net delivered cost of inventory.
(i) Determine the total annual cost of inventory based on uniform order lot sizes of 1, 2, 3, 4, 5 and 6 gross of product X.
(ii) Determine the minimum stock re-order point of product X, given the following: (a) working days: 240; (b) normal delivery time to receive an order: 20 working days from the date of purchase request is initiated; (c) safety stock: 1 gross.