14. Production / Inventory Planning. Computon, a manufacturer of pocket calculators, forecasts demand for its model T1 calculator to be 1,500 units for period 1 (January - June) and 2,100 units for period 2 (July - December). The calculator requires a special integrated circuit or ship for the central processor module. Computon manufactures chip in-house but also has a subcontractor available for supplying this special unit. The cost to manufacture the chip in-house is P45.00. Subcontracting costs (including shipping) are currently P52.50 for period 1 but are expected to increase to P62.50 for period 2. The inventory holding cost to keep a single chip in inventory for one is P19.00 (a somewhat high figure owing primarily to risk of obsolescence). Computons manufacturing capacity is 1,700 chips per period. Computons sub-contractor can provide 200 chips in period 1 and 300 chips in period 2. How should Computon plan its inventory, production, and procurement for the coming year?