1. Cessna Aircraft makes among other things, single engine propeller driven aircraft. Each airplane requires two wheels. These wheels are made in batches, and then stored until they are needed for aircraft production. Each year, 2,000 aircraft are produced, meaning 4,000 wheels are needed. The factory operates 250 days per year, and the usage rate is the same each operating day. When a batch of wheels are produced, setup cost are $800, and 100 wheels can be made in a day. Holding cost are $20 per wheel per year.

Use the information above to calculate: Economic Production Quantity (EPQ), cycle time, and run time (please do this in Excel using formulas). Also briefly, (1-2 sentences) explain what these three values mean.