Problem 4(6 points). TechParts Manufacturing produces precision components for electronics in-house rather than purchasing them from suppliers. The company wants to determine the optimal production lot size that minimizes total annual cost. Here is the relevant data: - Annual demand: 10,000 units - Setup cost per production run: \$150- Holding cost: \$2.00 per unit per year - Unit production cost: \(\$ 5.00\)- Daily production rate: 100 units/day - Daily demand rate: 40 units/day - Number of working days in a year: 250 a) Calculate the optimal production quantity (EPQ)(2 points). b) Determine the average inventory level (2 points). c) Compute the total annual cost, including production, setup, and holding costs (2 points).