The annual demand of valves per year in a company is 10,000 units. The current order quantity is 400 valves per order. The holding cost is Rs. 24 per valve per year and the ordering cost is Rs. 400 per order. If the current order quantity is changed to Economic Order Quantity, then the saving in the total cost of inventory per year will be Rs. (round off to two decimal places).

The correct answer is 943.60.

To find the savings in the total cost of inventory per year, we need to calculate and compare the Total Inventory Cost (TIC) under two scenarios:
1. The current order quantity ($Q=400$ valves).
2. The Economic Order Quantity ($Q^{*}$).

1. Given Data:
- Annual Demand ($D$) = 10,000 units/year
- Ordering Cost per order ($C_o$) = Rs. 400
- Holding Cost per valve per year ($C_h$) = Rs. 24
- Current Order Quantity ($Q$) = 400 valves

2. Calculate the Economic Order Quantity (EOQ):
The formula for Economic Order Quantity is:

$EOQ=\sqrt{\frac{2·D·C_o}{C_h}}$

Substituting the given values:

$EOQ=\sqrt{\frac{2·10000·400}{24}}$

$EOQ=\sqrt{\frac{8000000}{24}}\approx 577.35\text{valves}$

3. Calculate the Total Inventory Cost for the Current Policy (Q = 400):
The Total Inventory Cost (TIC) is the sum of the annual ordering cost and the annual holding cost:

$TIC\left(Q\right)=\left(\frac{D}{Q}·C_o\right)+\left(\frac{Q}{2}·C_h\right)$

Substituting $Q=400$:

$TIC\left(400\right)=\left(\frac{10000}{400}·400\right)+\left(\frac{400}{2}·24\right)$

$TIC\left(400\right)=10000+4800=\text{Rs.}14800$

4. Calculate the Total Inventory Cost for the EOQ Policy (Q* = 577.35):
Using the minimum total cost formula at EOQ:

$TIC\left(Q^{*}\right)=\sqrt{2·D·C_o·C_h}$

Substituting the values:

$TIC\left(Q^{*}\right)=\sqrt{2·10000·400·24}$

$TIC\left(Q^{*}\right)=\sqrt{192000000}\approx \text{Rs.}13856.41$

5. Calculate the Savings in Total Cost:

$\text{Saving}=TIC\left(400\right)-TIC\left(Q^{*}\right)$

$\text{Saving}=14800-13856.41=\text{Rs.}943.59\text{(or}943.60\text{depending on rounding)}$

Following the option's specific value, the saving in the total cost of inventory per year is Rs. 943.60.