The Hedge Corporation manufactures only one product: planks. The single raw material used in making.

The Hedge Corporation manufactures only one
product: planks. The single raw material used in making planks is the dint. For
each plank manufactured, 12 dints are required. Assume that the company
manufactures 150,000 planks per year, that demand for planks is perfectly
steady throughout the year, that it costs $200 each time dints are ordered, and
that carrying costs are $8 per dint per year.

a. Determine the economic order quantity of dints.

b. What are total inventory costs for Hedge (total
carrying costs plus total ordering costs)?

c. How many times per year would inventory be
ordered?

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