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James has an in - house production facility, whose daily production capacity is 2 0 0 units per day. James has a daily demand of

James has an in-house production facility, whose daily production capacity is 200 units per day. James has a daily demand of 100 units per day. Next year, James plans to upgrade his production facility to a capacity of 300 units per day. Suppose the daily demand, the fixed setup cost, and the holding cost remain the same. What will happen to the economic production quantity next year, as compared to this year?
(a) Increase by approximately 13%
(b) Decrease by approximately 13%
(c) Increase by 50%
(d) Decrease by 50%
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