The seal production shop at MG Oil & Gas has a single Mill-Turn work station where production is performed. The work station has 3-seal parts that require the Mill-Turn machine and the production planning horizon is assumed to be long run and stable. The Mill-Turn work station is identified as the critical workstation among any and all other resources in the shop, thus the engineer has ensured that it is decoupled from interactions from other shop resources. Part number Annual contracted amount (demand) Setup cost Cost (per unit) Production rate (per year) 1 2500 80 16 45,000 2 5500 120 18 40,000 3 1450 60 22 26,000 Holding costs are based on 18% annual interest rate, and the products are to be produced in a rotational cycle. Setup times are considered negligible