11.Connecticut River Textile Mills produces a special type of cloth for bed linens, which is demanded at a relatively uniform rate of 220,000 yards per year (250 workdays).

The production process for the linens can be set up at a cost of $120, and the cloth is produced at a rate of 2,900 yards per day. The holding cost for 1 yard of this cloth is estimated to be $0.45 per year. ;

a. Compute the economic production lot.

b. How long must the process run in order to produce the quantity you computed in part a?

c. What will the maximum inventory level. be, assuming that the inventory is zero when the process is initiated?