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Question 4: Drolet Manufacturing Company. in Saint-Hubert, Quebec. makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12000 tflashing lights per year and has the capability of producing 200 per day. Setting up the light production costs $100. The cost of each light 1s $1. The holding cost 1s $0.10 per light per year. a) What 1s the optimal size of the production run? b) What is the total cost per year, including the cost of the lights? ) What 1s the maximum level of inventory