The demand for fruit juice of BluePrint Company is about 2,000 liters per year, and BluePrint can produce juice at the rate of 38,000 liters per year. Setup cost is $100. The unit cost is $3, and the inventory holding cost is 22 percent annually. If the demand for fruit juice exceeds the available inventory, it is backlogged. A backlog accrues two types of cost loss of goodwill $0.12 per liter short and shortage penalty $9.1 per liter short per year.

Calculate: Economic production quantity, the optimal maximum backorder level, Annual total cost of inventory, Cycle time, Time to produce Q units, Time to deplete maximum inventory.