A firm makes two products, A and B. Each unit of product A requires 2 units of component H and each unit of product B requires 3 units of component H. Hourly demand for product A is 80 units and hourly demand for product B is 60 units. Lead time on component H is 5 hours and the cost per unit is $1.0. Component H is produced on a kanban system with container size of 200 and safety stock factor of 30%. For an investment of $3200, the setup time can be reduced to 0.8 hour. The system is expected to operate for 4-7 more years. Should the firm invest the $3200 ? No, investing will free up $2000 in working capital which does not even cover the investment of $3200 Yes, investing will free up $200,000 in working capital which will save much more than the $3200 Not enough information, investing will free up $10,000 in working capital. We need the firm's cost of capital. Yes, but only if the system has a minimum life of 4 years for sure to cover the initial cost. No, 10 years are needed to cover the initial cost