. Cesar Rego Circuits supplies microcomputer circuitry for customers that build super computers. Their annual demand is 36,000 units, with a setup cost of $25 per batch and a holding cost of $0.45 per unit per year. Their manufacturing facility can produce circuits at a rate of 300 units per day, and they are able to operate 360 days a year. (Total 10 Points)

1. What is Cesar Regos economic production quantity? What is the maximum inventory level, the time between orders, the total setup cost, and the total holding cost for this EPQ? (5 Points)

2. Please draw one inventory cycle of the saw tooth model for this EPQ. Do not forget to label the x and y axis on your model! (5 Points)