ABC Ltd, estimates demand for 5000 units of material during the next year. The costs associated with requisitioning the order, transportation, receiving of order and inspection are Rs. 200 per order. Storing cost is Rs. 30 per unit and cost of material handling and insurance is Rs. 20 per unit. ABC Ltd. has a policy of maintaining 20 percent of E0Q as safety stock. The daily usage of material is 30 units and lead time is 5 days. Determine units of EOQ, safety stock,
and reorder point.