22 Mar The following question has been answered before, t
The following question has been answered before, they just donot answer the hardest part, part C. This is the fulll question(answer can be found on Chegg). Hartley Incorporated buys plastic resin by the ton and thenpackages and distributes it in smaller amounts to industrial users.The resin typically costs $50 per ton, and Hartley uses 80,000 tonseach year. Placing an order for more resin costs $500 in allocatedlabor cost for purchasing personnel. Holding costs for the resinare estimated at 1 percent of the product value each month. Hartleyoperates 365 days a year. a. How much resin should Hartley ordereach time? b. What will be the average inventory and annual holdingcost? c. Suppose that instead of having each replenishment orderdelivered all in one shipment, Hartley asks its resin supplier todeliver each order in equally sized shipment, one shipment per day,with each shipment big enough to cover two days’ worth of demand.How will this affect Hartley’s order quantity, average inventory,and annual holding costs? (hint: Realize in this second scenariothat Hartley’s inventory level will never reach Q.) The problem with question C is the hint. When Hartley orders ashipment every day for 2 days of demand, doesn’t Q increaseinfinitely (orders > demand every day)? Attached
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