Use the text below to answer the subsequent questions.

A supplier to the Ford Motor Company stamps out parts using a press. Changing a part type requires the supplier to change the die on the press, which currently takes four hours to do$.$ The supplier estimates that each hour spent on the changeover costs $$250.$ Demand for parts is $1,000$ per month. Each part costs the supplier $$100,$ and the supplier incurs an annual holding cost of $25\%$ of the cost of a part or a unit.

Note: As you work on this problem, try to avoid the following typical errors:

Including cost of part in holding costs. Part cost is $1$ time and is not incurred over time when held in inventory.

Not converting R to annual demand, given holding costs are annual.

Incorrect identification of data in question. Ensure you review terminology in the this module to help in correct classification of $R,S,$ and $H.$