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40. An import/export firm has leased 20,000 cubic feet of storage space to store six items that it imports from the Far East. The relevant data for the six items it plans to store in the warehouse are Space per Unit (feet) Annual Demand Item (units) Cost per Unit DVD 32-inch flat screen TV 1,600 Blank DVD's 800 $200.00 150.00 30.00 12 18 8,000 (box of 10) Blank CD's 12,000 18.00 2 (box of 50) Compact stereo Telephone 400 1,200 250.00 24 12.50 3 Setup costs for each product amount to $2,000 per order, and holding costs are based on a 25 percent annual interest rate. Find the optimal order quantities for these six items so that the storage space is never exceeded. (Hint: Use a cell location for the Lagrange multiplier and experiment with different values until the storage constraint is satisfied as closely as possible.)

40. An import/export firm has leased 20,000 cubic feet of storage space to store six items that it imports from the Far East. The relevant data for the six items it plans to store in the warehouse are Space per Unit (feet) Annual Demand Item (units) Cost per Unit DVD 32-inch flat screen TV 1,600 Blank DVD's 800 $200.00 150.00 30.00 12 18 8,000 (box of 10) Blank CD's 12,000 18.00 2 (box of 50) Compact stereo Telephone 400 1,200 250.00 24 12.50 3 Setup costs for each product amount to $2,000 per order, and holding costs are based on a 25 percent annual interest rate. Find the optimal order quantities for these six items so that the storage space is never exceeded. (Hint: Use a cell location for the Lagrange multiplier and experiment with different values until the storage constraint is satisfied as closely as possible.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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40. An import/export firm has leased 20,000 cubic feet of storage space to store six items that it imports from the Far East. The relevant data for the six items it plans to store in the warehouse are Space per Unit (feet) Annual Demand Item (units) Cost per Unit DVD 32-inch flat screen TV 1,600 Blank DVD's 800 $200.00 150.00 30.00 12 18 8,000 (box of 10) Blank CD's 12,000 18.00 2 (box of 50) Compact stereo Telephone 400 1,200 250.00 24 12.50 3 Setup costs for each product amount to $2,000 per order, and holding costs are based on a 25 percent annual interest rate. Find the optimal order quantities for these six items so that the storage space is never exceeded. (Hint: Use a cell location for the Lagrange multiplier and experiment with different values until the storage constraint is satisfied as closely as possible.)
Transcribed Image Text:40. An import/export firm has leased 20,000 cubic feet of storage space to store six items that it imports from the Far East. The relevant data for the six items it plans to store in the warehouse are Space per Unit (feet) Annual Demand Item (units) Cost per Unit DVD 32-inch flat screen TV 1,600 Blank DVD's 800 $200.00 150.00 30.00 12 18 8,000 (box of 10) Blank CD's 12,000 18.00 2 (box of 50) Compact stereo Telephone 400 1,200 250.00 24 12.50 3 Setup costs for each product amount to $2,000 per order, and holding costs are based on a 25 percent annual interest rate. Find the optimal order quantities for these six items so that the storage space is never exceeded. (Hint: Use a cell location for the Lagrange multiplier and experiment with different values until the storage constraint is satisfied as closely as possible.)
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