11. Assume that a production line operates such that the production lot size model of Section 14.2 is applicable. Given D 6400 units per year, Co $100, and Ch $2 per unit
per year, compute the minimum cost production lot size for each of the following produc-
tion rates:
a. 8000 units per year
b. 10,000 units per year
c. 32,000 units per year
d. 100,000 units per year
Compute the EOQ recommended lot size using equation (14.5). What two observations
can you make about the relationship between the EOQ model and the production lot size
model?