2} HC Company is a supplier for seyerai retailers1 and the manager forecasts that the yearly demand is t bottles. The production rate is EDGE} bottles per day. The company record shows that the setting up cost per run is $1.D and holding cost of a bottle of shampoo per year is $D.4. Assume that HC Company operates 25] days a year. a} What is optimal run size? What is the capacity of HC Company's storage room to stock shampoos if it produces shampoos based on the optimal run size? Briefly justify your answer. b} Suppose that a new customer would like to negotiate a contract for purchasing the |Good Deal shampoos from HC Company. The Good Deal shampoo has a 1irery similar production process as that of the Worth 1y'alue shampoo. Based on annual demand predicted by the new customer and other information, the manager of HC estimates that the length of the production run of the |Good Deal shampoo is 30 days. Assume that the switching time from producing the Worth Value shampoos to the Good Deal shampoo is short enough to be ignored. To make sure that it can satisfy this new customer. should HC Company accept the contract with the new customer? Explain your reasoning and Justify quantitatively