Henderson Appliances uses the JIT method of production smoothing to keep their WIP levels low. Their three major products (i.e., Kettles, Steam Irons, and Heat Pumps) have a total daily demand of 750 units. Using production smoothing, they currently perform 20 setups per day and their production sequence has a mix of 30% Kettles, 40% Steam Irons and 30% Heat Pumps in daily production of at least 750 units.

1. (3 points) If the Kettles, Steam Irons, and Heat Pumps are required to have uniform batch sizes, with the daily production sequence used by Henderson Appliances, what is the minimum batch size needed to meet daily demand?
   1. 37 units per set up for each product
   2. 37 batches for each product
   3. 38 units per set up for each product
   4. 38 batches for each product