Question: In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (D/Q, is the number

In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost

In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (D/Q, is the number of orders) and the last term is the annual inventory holding cost (Q/2 is the average amount of inventory). Set up a spreadsheet model for the following data: Item 1 Item 2 Item 3 Annual Demand 2,500 2,500 1,500 Item Cost $100 $50 $80 $145 $125 Order Cost $165 Space Required (sq.ft.) 50 25 40 W = 6,000 /= 0.25 Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than 0 for Solver to find a solution. If required, round your answers to two decimal places. Optimal Solution: Q1 = Q3 =

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