Product A is assembled from two parts B and C. One unit of A is assembled from 1 unit of B and 2 units of C. Each item requires one or more operations and the lead time everywhere is assumed negligible. Part C requires first machining operation followed by heat treatment. Part B requires only machining operation. Product A requires an assembly operation. The Master Production Schedule (MPS) for product A is given in the table below :

Month	1	2	3	4	5	6
Product A (in units)	100	150	100	200	125	100

The process time data is shown in the table below :

Operation	Item	Work center	Standard time/unit (in hr)
10	c	Machining	0.5
	C	Heat treatment
20			2.0
30	B	Machining	1.0
40	A	Assembly	0.5

i. What will you recommend as normal capacity at each work center?

ii. If the setup cost to produce a batch of product A is 5,000, the manufacturing cost of the product A is 2,000 per unit and the inventory holding cost per unit per year is 20% of the product cost, what Master Production Schedule (MPS) will you recommend to minimize sum total of setup and inventory holding costs?

Given the MPS in the table above, what is the schedule of gross requirements of part C?