1. A company that makes kitchen faucets has found that demand for its model fa

1. A company that makes kitchen faucets has found that demand for its model faucet is fairly constant at the rate of 100000 units per year. Each model of
faucet is made using the same equipment and it costs $100 in lost production and scrap every time a change is made from producing one model of faucet to
another. The cost of materials and labor in each faucet is $40 and the inventory holding cost is 25 percent of this per unit per year. If faucets are produced
at the rate of 1000 per day.

a. How many should be produced in each production run based on 250 working days per year?

b. What is the maximum inventory level?
c. How many days does it take to produce in a round?