Demand for an item over the next five periods is forecasted to be 10, 20, 15, 16, and 18.

There are currently 20 items on hand. The order cost is $100 per order, and each item costs $50. The time value of money per period is 0.1. Write the formulation to determine the optimal order quantities. Use Excel Solver to get the solution. Approximate by determining the average demand and solve using EOQ. Compare.