Problem 2. (15 points) Assume that a production line operates such that the production lot size model described in Quantitative Methods, Section 14.2 is applicable and has the following parameters: D = 7500 units per year C = $50 per setup = $2 per unit per year. Problem 2a. (10 points) Compute the minimum cost production lot size for each of the following production rates. What is the EQO, give the same parameters? 8,000 units per year 15,000 units per year 50,000 units per year 100,000 units per year Problem 2b. (5 points) What two observations can you make about the relationship between the EOQ model and the production lot size model? minimum cost production lot size for each of the following production rates. Express your answer as a whole number using standard rounding rules. Annual Production Rate (units/year) EPQ 8,000 units 15,000 units 50,000 units 100,000 units EPQ Rate (units/year) 8,000 units 15,000 units 50,000 units 100,000 units What is the EOQ, give the same parameters? Express your answer as a whole number using standard rounding rules. son EOQ = units