A local machine shop buys hex nuts and molly screws from the same supplier. Thehex nuts cost 15 cents each and the molly screws cost 38 cents each. A setup costof $100 is assumed for all orders. This includes the cost of tracking and receivingthe orders. Holding costs are based on a 25 percent annual interest rate. The shopuses an average of 20,000 hex nuts and 14,000 molly screws annually.a. Determine the optimal size of the orders of hex nuts and molly screws, and theoptimal time between placement of orders of these two items.

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