Midwest has expected sales of 12,000 pipes this year, an ordering cost of $30 per order, and carrying costs of $2.00 per pipe.

a) What is the economic ordering quantity?

b)How many orders will be placed during the year?

c)What is the average inventory?

d)What is the total cost of ordering and carrying inventory?

e) Currently Mid West orders twice a year, should they change their ordering policy?