Question: A company orders two items. Item 1 costs $ 10 and has an annual demand of 100 units and an ordering cost of $ 40.

A company orders two items. Item 1 costs $ 10 and has an annual demand of 100 units and an ordering cost of $ 40. Item 2 costs $ 40 and has an annual demand of 180 and ordering costs of $ 20. The fee for keeping an inventory is 20% per year. Warehouse space for the two items is limited, and because they are the same size, there can be no more than 40 total units in inventory at any one time. In addition, the total value of the inventory must be within a budget of $ 400 at all times. What quantity to order would you recommend? (20 points)

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