A manufacturer uses the same production line to produce two products with characteristics as follows: The demand for item 1 is 2000 units per year and the inventory holding cost is $0.2 per unit per year. Similarly, demand for item 2 is 1000 units per year and the inventory holding cost is $0.08 per unit per year. The production rate is the same for both products, 4000 units per year. There is a fixed cost of $2.60 associated with each set-up. Suppose a rotation policy is used to coordinate the production, and T is the time in years of each cycle. (1) Find the best value of T, the production quantity for each item, and the system cost per year. Assume shortage is not allowed. (2) Now suppose the demand for item 2 is 100 units per year, would you still recommend the rotation policy? If not, please suggest an alternative production plan. How much is the saving by abandoning the rotation policy