Ventura Lumber Mill (not a real company) in Salvador, Brazil, processes 9,000 logs annually and operates 300 days during a year. Ventura’s supplier delivers orders to the lumber mill at the rate of 50 logs per day. The cost to Ventura for placing an order to the supplier is US$1,400 per order, and the cost of carrying inventory of logs is US$20 per log per year: a. What is the economic production quantity (EPQ)? b. What is the average inventory level for this optimum production quantity? c. How many production setups would there be in a year? p.595 d. What is the optimal length of production run in days? e. What would be the savings in annual inventory cost if the holding costs can be reduced to US$18 per log per year?