Current Situation Analysis: Inventory: 10,000 units at $5 holding cost per unit per month. Ordering: Average order cost is $100 for 2,000 units. Operating Schedule: 300 days per year. Manufacturing: 7 steps with specified cycle times, 10% defect rate, and a $15 rework cost per defective unit. Demand: Seasonal variance with 500 units/day at peak and 150 units/day at trough. Production: Maximum capacity is 400 units/day. Costs: Fixed costs at $600,000/year, variable cost at $250/unit, and selling price at $500/unit. Project Objective: To deliver a detailed operational efficiency improvement plan that will reduce costs, optimize inventory, increase production efficiency, and meet seasonal demand, all while aiming to exceed the annual profit target. Instructions for Consultants: We need to receive advice on: Economic Order Quantity (EOQ) to minimize total inventory costs. Reorder Point (ROP) given demand variability and lead times. Project the financial impact of the defects and rework. Evaluate the existing capacity against seasonal demand as a function of under-utilization or overcapacity. What is the break-even when the company covers all its costs under the current and proposed plans