Question 4: EOQ with Finite Production Rate (20 points) A bicycle production company receives a demand for 12,000 bikes each year, and needs to produce one frame for each bike. The production setup cost for the company is $1000, and per unit production cost is $20. The company can produce 1,500 frames per month. (There are 12 months in one year.) The yearly interest rate is estimated to be 30%. a. [8 points] What is the optimal production quantity for frames and maximum inventory level that can be achieved in any order cycle? b. [6 points] What is the annual total cost of setup, ordering, and inventory holding? C. [6 points] Suppose there is a limitation set by the production facility: The production of the frames can be only processed once every two months. What should be the production quantity in this case? By what percentage would this new rule change the annual cost