Problem 2: The following table tabulates the demand, the fixed order cost, and the inventory carrying cost for four items. Item1 Item2 Item3 Item4 Demand 600 3500 5000 7000 Fixed Order Cost $ 17.00 $ 10.00 $ 7.00 $ 5.00 Price $ 15.00$ 13.00 $ 10.00 $ 8.00 Inventory Carring-cost rate 10% 10% 10% 10% Floor Space Required(s.f.) 30.00 25.00 20.00 15.00 A. What is the optimal inventory policy for each item if there is no restriction on space availability? B. What is the optimal inventory policy for each item, if there is only 15,000 s.f. of storage space is available? Hint: First, develop the non-linear model with one constraint, then use Lagrange Multipliers method to solve it. Finally, use Excel's Goal Seek feature or Solver to find the numerical answers. Problem 2: The following table tabulates the demand, the fixed order cost, and the inventory carrying cost for four items. Item1 Item2 Item3 Item4 Demand 600 3500 5000 7000 Fixed Order Cost $ 17.00 $ 10.00 $ 7.00 $ 5.00 Price $ 15.00$ 13.00 $ 10.00 $ 8.00 Inventory Carring-cost rate 10% 10% 10% 10% Floor Space Required(s.f.) 30.00 25.00 20.00 15.00 A. What is the optimal inventory policy for each item if there is no restriction on space availability? B. What is the optimal inventory policy for each item, if there is only 15,000 s.f. of storage space is available? Hint: First, develop the non-linear model with one constraint, then use Lagrange Multipliers method to solve it. Finally, use Excel's Goal Seek feature or Solver to find the numerical answers