Consider two items ordered jointly. Fixed ordering cost K

$=$

$$$

$5$

$0$

$0$

$$for each shipment

$($

or

a combined shipment if ordered jointly

$)$

$.$

$$Weekly demand of each product is D

$1$

$=$

$1$

$0$

$0$

$$and D

$2$

$=$

$1$

$5$

$0$

$,$

respectively

$.$

$$Inventory holding cost per unit per week for product one is h

$1$

$=$

$$$

$1$

$,$

$$and that for

product two is h

$2$

$=$

$$$

$2$

$.$

$$Consider

$5$

$2$

$$weeks in a year. If the two products are ordered jointly

$($

i

$)$

$$once

a week, or

$($

ii

$)$

$$once every two weeks, compute the order quantity for each product and the total

annual cost of the two products

$($

including fixed ordering and holding cost

$)$

$$in each case.

$[$

The same

example with the two products ordered separately was covered in Topic

$3$

$$in class

$]$