2. Mel is considering making the brackets needed for her machine shop. She has determined that the setup costs would be $25, and 50 brackets can be produced per day once the machine has been set up. She estimates that the cost of producing one bracket would be $14.80 and the holding cost would be 10% of this cost. a) What is the daily demand rate? b) What is the optimal production quantity and how long will it take to produce it? How much inventory is sold during this time? c) If Mel uses the optimal production quantity, what would be the maximum inventory level? What would be the average inventory level? What is the annual holding cost? d) How many production runs would there be each year? What would be the annual setup cost? e) Given the optimal production run size, what is the total annual inventory cost? f) If the lead time is one-half day, what is the ROP? 2. Mel is considering making the brackets needed for her machine shop. She has determined that the setup costs would be $25, and 50 brackets can be produced per day once the machine has been set up. She estimates that the cost of producing one bracket would be $14.80 and the holding cost would be 10% of this cost. a) What is the daily demand rate? b) What is the optimal production quantity and how long will it take to produce it? How much inventory is sold during this time? c) If Mel uses the optimal production quantity, what would be the maximum inventory level? What would be the average inventory level? What is the annual holding cost? d) How many production runs would there be each year? What would be the annual setup cost? e) Given the optimal production run size, what is the total annual inventory cost? f) If the lead time is one-half day, what is the ROP