Question: Using the data provided in Problem 23, determine what will happen if HP uses the economic production quantity model to establish the quantity produced each

Using the data provided in Problem 23, determine what will happen if HP uses the economic production quantity model to establish the quantity produced each cycle.

(a) Calculate the economic production quantity (EPQ).

(b) Calculate the maximum inventory level using the EPQ.

(c) Calculate the total annual cost of using the EPQ.

(d) Calculate the penalty cost HP is incurring with its current policy.

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