XYZ Company produce books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,200copies. The cost of one copy of the book is $14.50. The holding cost is based on an 18% annual rate, and setup costs are $150 per setup. The equipment on which the book is produced has an annual production volume of 27,000 copies. XYZ has 300 working days per year, and the lead time for a production run is 15 days. Answers the following aspects of the inventory policy for XYZ. a. Currently the company is using EOQ model for determining their order size. As a management consultant how can you help them to reduce inventory cost? b. What would be the i. Minimum cost production lot size? ii. Number of production runs per year? iii. Cycle time? iv. Length of a production run. v. Max. inventory? vi. Reorder point? vii. Total annual cost?