company has a demand of 12000 units/year for an item and it can produce 2000 units per month. The cost of one set up is $400 and the holding cost/unit/month is $0.15. Find the optimal lot size and the total cost per year. Assuming the cost of one unit is $4. Also find the maximum inventory level, manufacturing time and total time. D=12000 units/yr, p=2000 units/mth => p=2000*12=24000 units/yr, A=$400, h=$0.15 unit/mth => h=0.15*12=$1.8 unit/yr, Cs=$4 unit