Question: item i s considered, that the entire quantity ordered arrives a t one time, that the demand for the item i s constant over time,
item considered, that the entire quantity ordered arrives one time, that the demand for the item constant over time, and that shortages are allowed.
Let
annual demand for item
unit cost item
per order placed for item
space required for item
the maximum amount space available for all goods
inventory carrying charge a percentage the cost per unit.
The decision variables are the amount item order. The model
Minimize
Construct and solve a nonlinear optimization model for the following data.
Complete the model.
and $
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