A company is concerned with the stock of three items with the characteristics shown in the...

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A company is concerned with the stock of three items with the characteristics shown in the following Table. The items have a reorder cost of $100 and a holding cost of 20% of the unit cost a year. What would be the best ordering policy if the company wants to limit average investment in these items to $40002 Unit cost Item Demand HC RC 1 100 100 20 (= 0.2*100) 100 300 60 12 (= 0.2*60) 100 3 200 40 8 (= 0.2*40) 100 A company is concerned with the stock of three items with the characteristics shown in the following Table. The items have a reorder cost of $100 and a holding cost of 20% of the unit cost a year. What would be the best ordering policy if the company wants to limit average investment in these items to $40002 Unit cost Item Demand HC RC 1 100 100 20 (= 0.2*100) 100 300 60 12 (= 0.2*60) 100 3 200 40 8 (= 0.2*40) 100