The cost to set up for producing a standard component is approximately $200. Once set up they can produce at a rate of approximately 500 units/month (6,000 units per year) at a cost of $100 each. A monthly demand is estimated to be 400 units. If the firm uses 30% annual rate for holding inventory (Assuming 200 working days per year):
(a) What is the most economical lot size to produce using ERL model?