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 (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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