Question: (P3) A company manages 5 inventory items with data as follows: We assume shortages are not allowed and demand must be met for each item.

(P3) A company manages 5 inventory items with

(P3) A company manages 5 inventory items with data as follows: We assume shortages are not allowed and demand must be met for each item. (a) Suppose the total available storage space is 500m2. Determine the optimal order quantities of each item to minimize inventory cost. (b) Suppose the total available storage space is 25m2. Determine the optimal order quantities of each item to minimize inventory cost. (you will need to numerically compute using a root solver). (c) Referring to part (b), suppose a small amount m2 of additional storage space becomes available. Use your solution from part (b) to estimate how much we expect to save in inventory costs (your answer should be in terms of )

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