SuperCity is a large retailer of electronics and appliances. The store sells three different models of TVs that are ordered from different manufacturers. The demands, costs, and storage requirements for each model are summarized in the following table:

It costs $60 to do the administrative work associated with preparing, processing, and receiving orders, and SuperCity assumes a 25% annual carrying cost for all items that it holds in inventory. There are 3,000 square feet of total warehouse space available for storing these items, and the store never wants to have more than $45,000 invested in inventory for these items. The manager of this store wants to determine the optimal order quantity for each model of TV.
a. Formulate an NLP model for this problem.
b. Implement your model in a spreadsheet and solve it.
c. What are the optimal order quantities?
d. How many orders of each type of TV will be placed each year?
e. Assuming that demand is constant throughout the year, how often should orders beplaced?

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Model 2 el 3 Annual Demand Unit Cost Model 1 800 $300 500 $1,100 1,500 $600 Storage space req'd25 16 sq ft