) Acme Co. manufactures digital cameras. Demand for the current model is expected to occur at a constant annual rate of 5400 items. One digital camera costs $349. The holding cost is based on a 10% annual rate, and production setup costs are $1200. The manufacturing plant has an annual production capacity of 8900 units. Acme has 275 working days per year, and the lead time for a production run is 2 days. Use the production lot size model to compute the following values: a. Minimum cost production lot size b. Number of production runs per year c. Cycle time d. Length of a production run e. Maximum inventory f. Total annual cost g. Reorder point

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