The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that clare that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand om item is constant over time, and that no shortages are allowed. Sun wa relay the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation: Let Dj = annual demand for item Cj - unit cost of itemj Sj = cost per order placed for item = inventory carrying charge as a percentage of the cost per unit WE the maximum amount of space available for all goods Wi= space required for itemj The decision variables are Qj, the amount of item / to order. The model is: Mimimize 54.[C,D, +Sen+ic, stw , sw 0,20 j=1,2,...N In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (DI/Qj is the number of orders), and the last term is the annual inventory holding cost (Q1/2 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 Order Cost (5) 165 145 125 Space Required (sq. feet) 50 25 W = $21,000 i = 0.3 Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than for Solver to find a solution. If required, round your answers to two decimal places. Optimal Solution: Q1= Q2= Q3= Total cost = $