Design the model$($s$)$ for the first quarter. Just report the cost of each model, no explanation is required. The cost of the products can be found under "Production Simulation" under "Manufacturing". $(5$ points$)$Enter and report your planned number of salespeople, demand per salespeople, your planned daily demand, and your decision to produce per day$($p$).$ An explanation is not required. $(5$ points$)$Invest in Changeover Improvement so that you can take advantage of your PCS$.$ Having an $8-$hour change production control system but $12-$hour changeover time will take $12$ hours to switch. The faster the changeover the lesser the need for replenishment stock.What does inventory mean for your company? What is your overall inventory policy $($i$.$e$.$ Holding cost rate, Customer service level, safety stock, cost of stockout, Q$,$ ROP etc.$)?(40$ points$)$Based on the chapter, calculate your target level $($Q$)$ and replenishment points $($ROP$)$ for each model using the Production Order Quantity Model $($Page $504).$ Show your work. Use changeover cost per unit for S$.$ Changeover cost can be found under "Improve Changeover". But first, make sure you improve the changeover time. Use Quarterly demand for D$.$ The holding cost rate can vary from $10\%$ to $50\%.$ Think$/$search appropriate holding cost rate for computers. Finding the replenishment point is more important if you have more than one model. If it is too high, there is a danger of not producing other model$($s$).$ If it is too low, there will be too many changeovers which will increase cost. The replenishment point is the amount that will keep you selling one model while other models are produced. Example: Model $1,$ Model $2,$ ROP for Model $1=$ daily demand for Model $1($d$)$ x Days Model $2$ is in production$($L$)(45$ points$)$While you calculate target and replenishment points, you should eventually set your points based on trying several different combinations in the simulation. Your target and replenishment points should minimize ending inventory and stockouts which again can be found in "Production Simulation". What did you eventually decide for your target and replenishment points? Enter your decisions. $(5$ points$)$