Royal Transformers Inc. has a problem. They produce transformers which are expensive to produce and store, so the company tends to keep inventory low. At the same time, it is important to respond to demands quickly, since a customer who wants a transformer is very likely to get one from a competitor if Royal Transformers Inc. doesn't have one available immediately. The Company's current policy to produce transformers is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up for transformer