Inventory management (work-in-process products) ABC Company has two processes to produce X. The company is planning the inventory of work-in-process products. So far, we have known the following information:

Process 2: Constant demand rate, daily demand: D =90 Q items per order: Order quantities are fixed, i.e., each time Process 2 places an order to Process 1, it is for Q items (this is what we need to determine). h = 0.3 dollars, inventory carrying cost for per item held for one day Planning horizon is long (infinite).

Process 1: K = 5, fixed setup cost of Process 1 to start production, incurred every time when the Process 2 places an order. P = 300: production capacity in items in one day, i.e. production speed per day P

Determine the optimal ordering quantity for the working-in-process products each time, ordering time interval, and maximum inventory level. (Show steps)