Question 3 (25 points).

The dedicated production line with the following figures

Production setup cost ($/setup)	Holding cost ($ for each PCS/year)	Demand (PCS/year)	Capacity (PCS/year)
400	1.10	10,000	29,000

1. Determine:
   1. The optimal production quantity (05 points)
   2. The total annual inventory cost (05 points)
   3. The number of production runs per year (05 points)
   4. The maximum inventory level. (05 points)
2. If it has only enough storage space to hold a maximum of 511 PCS in inventory, how will that affect total annual inventory costs? (05 points)