It may be possible to reduce setup costs when a company orders several types of products from the same supplier. This can happen if the ordering is synchronized so that the different products are delivered at the same time (at least some of the time). Although this model can be developed for any number of different products, we will only consider the simplest of situations where there are two products. Let Kj be the setup cost when only product j is ordered for j = 1; 2. Let K12 be the setup cost when both products are ordered at the same time. For there to be a benefit from synchronization, we must have K12 < K1 K2. Let tj be the time between orders for product j and let T = max{t1; t2}. T is the cycle time in the synchronized setting. Let nj be the number of times product j is ordered during a period of length T. Explain why the annual setup cost equals (K12 (n1 - 1)K1 (n2 - 1)K2)/T